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1 April 2015
Market Announcements Platform
ASX Limited
Exchange Centre,
20 Bridge Street
Sydney NSW 2000
PARDOO NICKEL PROJECT JOINT VENTURE
ASX Code: SEG
Segue Resources Limited (Segue or the Company) is pleased to advise that it has signed a binding term sheet (Term Sheet) to enter into a joint venture with Port Exploration Pty Ltd (Port) over the Company's Pardoo Project in the Pilbara Region of Western Australia.
The key points of the Term Sheet are:
Segue will receive a non-refundable fee of $50,000 within 60 days;
Segue and Port have agreed to enter into a Farmin and Joint Venture Agreement (Agreement) within 90 days and Port must become a subsidiary of an ASX-listed company or assign its interest to an ASX-listed company within six months;
Port can acquire a 51% interest in the Pardoo Project by spending $250,000 on exploration within
12 months of signing the Agreement (Stage 1 Interest);
Port can acquire an additional 29% interest in the Pardoo Project (increasing its interest to 80%) by spending a further $250,000 on exploration by no later than 12 months after earning the Stage 1 Interest (Stage 2 Interest); and
Upon Port earning the Stage 2 Interest, Segue has the right for a period of 18 months to sell its
20% Joint Venture interest to Port for shares in Port (or any listed head company of Port), subject to necessary shareholder, ASX and other regulatory approvals.
Commenting on the Pardoo Joint Venture, Segue's Managing Director, Mr Steven Michael, said:
Last year Segue completed a diamond drill hole (PAD001) at the Pardoo Project which intersected a
225m thick mafic intrusion (gabbro), confirming the potential of the Project to host a large-scale mafic-ultramafic intrusive complex prospective for nickel sulphide deposits.
The joint venture with Port Exploration will enable sufficient cash and technical resources to be spent at the Pardoo Project over the next two years, thereby allowing Segue to concentrate its exploration activities on the Plumridge Nickel Project.
For further information visit www.segueresources.com or contact:
Segue Resources Limited Mr Steven Michael Managing Director
E: [email protected]
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