PERTH (miningweekly.com) – ASX-listed junior Fraser Range Metals Group on Wednesday revealed that it had executed a joint venture (JV) agreement with fellow-listed Segue Resources, over the company’s Plumridge East multi-metals project.
Earlier this month, Fraser Range reported that it had agreed to a nonbinding JV proposal worth A$1.2-million, but did not reveal the name of its JV partner.
Fraser Range said on Wednesday that under the JV agreement, Segue could earn up to an 80% shareholding in the Plumridge East project for A$100 000 in cash and a further 100-million Segue shares, on the completion of the transaction.
Fraser Range had also agreed to the sale of its interest in ten ongoing licence applications in the Fraser Range area, for an additional 25-million Segue shares.
Segue told its shareholders that the transaction would immediately increase the company’s own Plumridge project area by over 25%, to 2 880 km2, and up to potentially 3 620 km2, depending on the licence applications.
“Segue has managed to acquire a large, strategic tenement package at the Plumridge nickel project, in the heavily sought-after Fraser Range province. As with our previous Fraser Range acquisitions, Segue has conserved its cash reserves with the majority of consideration being Segue shares,” said Segue MD Steven Michael.
He pointed out that Fraser Range would also seek approval from its shareholder for an in-specie distribution of around half its shares in Segue, which would expand the other company’s shareholder base.
The Plumridge East project covers 594 km2 and is prospective for gold, base metals, nickel and platinum-group elements.