Segue acquisition expands its lithium prospects in the Gascoyne
Segue Resources (ASX: SEG) has exercised its option to acquire three exploration licence applications covering 220 square kilometres at Morrissey Hill in the Gascoyne region of Western Australia. The group entered into an option and purchase agreement to acquire 100% of the share capital of Next Advancements Pty Ltd in March, postulating that the tenements were highly prospective for tantalum lithium minerals.
At the time, management highlighted that the tenements were adjacent to exploration applications held by Lithium Australia (ASX:LIT) and Venus Metals Corporation (ASX: VMC).
The terms of the agreement were an option fee of $25,000 in cash and $25,000 in Segue shares at an issue price of 0.1 cents per share followed by follow-up payments on the establishment of a JORC compliant resource.
Managing Director, Mr Steven Michael saw the agreement as a low-cost option over three highly prospective tenements in an emerging tantalum lithium region of Western Australia. Indeed, the Gascoyne region has grown in prominence as a go to destination for lithium hunters.
It was only last month that Lithium Australia expanded its extensive holdings in the Gascoyne region through the acquisition of all of the issued capital of Lithophile. Two of the tenements acquired by Segue Resources abut those of Lithium Australia.
Shares in Segue doubled at the start of July when the company announced that it had commenced drilling at its Plumridge gold project, but they have retraced slightly in the last week.
Share price fluctuations are not an indicator of future performance. As such, these factors should not form the basis of an investment decision and you should seek professional financial advice.
As a dual commodity play providing exposure to safe haven gold and an industrial metal in lithium, success at either of the projects could rejuvenate interest in the stock.
S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.
Conflict of Interest Notice
S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.
Publishers Notice
The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.
