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Segue Resources Ltd gets strong support to fund gold and lithium exploration

Last updated: 15:24 17 Nov 2016 AEDT, First published: 15:00 17 Nov 2016 AEDT

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Segue is a mineral explorer.

Segue Resources Ltd (ASX:SEG) has raised $1.2 million through the placement of 600 million shares to existing and new shareholders.

The placement was heavily supported with the initial capital raising target being increased by 20% to $1.2 million from $1 million

The effective issue price of shares was $0.002 and for every 2 shares, investors received 1 free option exercisable at $0.005, expiring 30 June 2019.

Secured funds will be used to accelerate exploration at the Barlee Gold Project, Gascoyne Lithium Project and Plumridge Gold Project in Western Australia.

Shareholder approval is required for the issue of 100 million of the shares and all 300 million options.


Background

Segue is a mineral explorer with six projects exploring for nickel, gold and lithium in Western Australia

The project portfolio includes:

- Nickel: Plumridge Nickel JV with MMG Ltd (HKG:1208);
- Nickel: Deralinya project;
- Nickel: Pardoo JV with Caeneus Minerals Ltd (ASX:CAD);
- Gold: Plumridge gold project;
- Gold: Barlee gold project; and
- Lithium: Gascoyne lithium (includes JV with Zeus Resources Ltd (ASX:ZEU)).


Upcoming work programs

Segue will commence a project-wide bulk leach extractable gold survey at the Barlee Gold Project in late November 2016. 

The survey is expected to take four weeks and aims to identify areas of gold anomalism for follow-up detailed soil sampling in 1Q 2017.

Segue also expects to receive the assay results from the recently completed stream sediment sampling programme at the Gascoyne Lithium Project by the end of November. 

These results will be used to define areas of lithium anomalism for detailed follow-up exploration in early 2017.

Following the successful aircore drilling programme at the Plumridge Gold Project in September 2016, Segue will undertake an ultra-high resolution aeromagnetic survey over the project area in December 2016. 

The detailed survey will better define drill targets for a reverse circulation drill program in 1H 2017.


Analysis

Securing funding through the placement of shares will ensure Segue stays leveraged to exploration news flow related to multiple projects and commodities.

Furthermore, the investor demand causing the raising to be expanded by 20% is a testament to the company and its projects.

Assay results are expected to be received this month from Barlee gold project and Gascoyne lithium project.

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