Segue Resources has increased its lithium exploration tenement holding in the Gascoyne region by entering into a farm-in joint venture (Mortimer Hills JV) with Zeus Resources Limited.
According to the ASX release by Segue, the key terms of the Mortimer Hills JV are:
- Segue to spend $30,000 on exploration prior to 15 May 2016;
- Following completion of the Initial Exploration, Segue can earn a 35% interest in the JV through the expenditure of $125,000 within 12 months;
- Following completion of the Stage 2 Farmin, standard JV terms apply, including contributions in proportion to equity holdings, dilution and pre-emptive rights and;
- If either JV party’s interest dilutes to less than 10% then that party’s interest will convert to a 1% NSR royalty.
The Mortimer Hills JV covers granted exploration license E09/1618 which is along strike from the three tenements Segue recently acquired an option over.
With the addition of tenement E09/1618, Segue now has interest in over 400km2 of exploration licenses in the Gascoyne region, which makes it the largest explorer in this potential lithium province.
Commenting on the Mortimer Hills JV, Segue‘s Managing Director, Mr Steven Michael said that it adds significantly to the company’s newly optioned package of exploration tenements in the emerging lithium province of WA.
“Segue has secured a farm-in joint venture over the only granted exploration tenement currently being explored for lithium minerals in this area. This is a major strategic advantage, as Segue will be able to drill-test lithium targets immediately following the upcoming field visit, commencing this week,” Mr Michael said.
“Segue is now positioned as the largest tenement holder in the region and its tenements are adjacent to exploration licence applications from established lithium explorers, Lithium Australia and Venus Metals. Both the option and farm-in joint venture have been completed with very little upfront cash o share payments, with nearly all money to be spent on exploration. Segue will continue to assess opportunities for increasing its exposure to lithium exploration without significant dilution to Segue shareholders, as these two transactions have demonstrated.”