MMG and Segue Resources Enter JV for Plumridge Nickel Project

Segue Resources Ltd. (ASX:SEG) announced that it’s entered into a joint venture agreement with MMG Ltd. (HKEX:1208). It covers eight tenements at Segue’s Western Australia-based Plumridge nickel project.
As quoted in the press release:

Under the Joint Venture, MMG can earn an initial 51% interest through the expenditure of $6.5 million before 31 December 2019 (Stage 1), including $1.5 million to be spent before 31 December 2016.
Once MMG has met the Stage 1 requirements, MMG can elect to increase its interest by 19% (to 70%) through the additional expenditure of $7.5 million within two (2) years (Stage 2). MMG must maintain all tenements in good standing during both Stage 1 and Stage 2.
The Joint Venture agreement contains standard provisions, including contributions in proportion to equity holdings, dilution and pre-emptive rights. If either Segue or MMG’s joint venture interest dilutes to less than 10% then that party’s interest will convert to a 1.5% NSR royalty.

Click here to read the full Segue Resources Ltd. (ASX:SEG) press release.