MMG has entered into a joint venture with Segue Resources which will see the company fund up to $14 million worth of nickel exploration in the Fraser Range.
The Plumridge Nickel JV will allow MMG to earn up to a 70 per cent interest by funding the exploration covering 2,250km of exploration licences.
Under the JV, MMG can earn an initial 51 per cent 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, the company can elect to increase its interest by 19 per cent through the additional expenditure of $7.5 million within two years.
Over the past two years, Segue has completed a series of transactions which have resulted in the company owning a 100 per cent in over 3,300 km of exploration tenements at the Plumridge Project.
The company’s managing director, Steven Michael, said the Plumridge Nickel JV is a significant milestone for Segue in the exploration for a world-class nickel deposit.
“MMG has a highly skilled team of geologists and geophysicists who will help maximise the potential for a significant nickel-copper discovery at Plumridge with a large and accelerated exploration programme,” Michael said.
“We are excited about the potential upside this joint venture partnership may deliver.”
Segue will retain a 100 per cent interest in three exploration licences to the west of the Plumridge Nickel JV including the Plumridge Gold Project , and the Salt Creek Project.