THE BOURSE WHISPERER: Segue Resources (ASX: SEG) has entered into agreements with three unlisted companies to acquire 12 exploration licences totalling 3,538 square kilometres in the Albany-Fraser Range Province of Western Australia.
Segue said the deal will result in the company becoming one of the largest tenement holders in the Fraser Range Province.
The tenements contain the Plumridge nickel and gold projects in the northern portion of the Fraser Range and the Deralinya project in the southern Fraser Range.
Fraser Range Exploration Tenements Source: Company announcement
The Plumridge project is set to become Segue’s immediate exploration focus as the company considers it to be prospective for Nova-style nickel-copper deposits.
“Through these three acquisitions, Segue has the opportunity to acquire a very large, contiguous tenement holding in the exciting Fraser Range Province, which hosts the Nova-Bollinger nickel-copper deposits,” Segue Resources managing director Steven Michael said in the company’s announcement to the Australian Securities Exchange.
“Segue’s review of existing aeromagnetic data has identified several targets which display a similar magnetic signature to that of the Nova “Eye” and will form the basis of our exploration program.”
Total consideration for the deal is $1.3 million with only $0.2 million being paid in cash, as a non-refundable deposit.
Segue will issue the Vendors with 550 million shares, which are being issued at the company’s 20-day VWAP of 0.2 cents per share.
The majority of the tenements are owed 100 per cent by the respective companies, except for four tenements in the Plumridge nickel and gold project area which are subject to a farm-in Joint Venture with International Goldfields (ASX: IGS).
Segue explained that under the JV agreement, it can earn a 60 per cent interest in the Plumridge Joint Venture by spending $1 million by January 2015.