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.