Melbourne-based MMG is a leading global resources company which operates and develops copper, zinc and other base metals projects across Australia, the Democratic Republic of Congo (DRC), Laos and Peru.
Segue controls 100% of 14 tenements in the northern portion of the Fraser Range Province totalling 3,250km2, which together form the Plumridge Project.
Under the terms of the deal, MMG can earn a 51 per cent interest in Segue’s Plumridge Nickel Project by investing $6.5 million for exploration activity between now and December 2019.
“The Plumridge Nickel Joint Venture with MMG is a significant milestone for Segue in the exploration for a world-class nickel deposit in the Fraser Range. The multi-million dollar, multi-year joint venture with a leading diversified base metals company will provide the necessary resources, both financial and technical, to adequately explore the extensive tenement holding at the Plumridge Nickel Project. MMG has a highly skilled team of geologists and geophysicists who will help maximise the potential for a significant nickel-copper discovery at Plumridge with a large and accelerated exploration programme,” said Segue’s Managing Director, Mr Steven Michael.
“MMG will manage all exploration activities on the Joint Venture tenements and is required to spend a minimum of $1.5 million by 31 December 2016 and a further $5.0 million by 31 December 2019 to earn an initial 51% interest in the Joint Venture. If MMG elects to continue sole-funding beyond Stage 1, it can increase its interest to 70% through an additional $7.5 million of expenditure over two years. If this occurs, a total of $14 million would have been spent by MMG on the Plumridge Nickel Project, with Segue retaining a 30% interest. We are excited about the potential upside this joint venture partnership may deliver.”