SegueResources Ltd. entered into a lithium farm-in with covering theMortimer Hillsproject in Western Australia, according to an April 19 news release.
Under the agreement, Segue will spend A$280,000 to earn upto a 50% joint venture stake in the project in three stages. It already startedfieldwork at the Mortimer Hills project site and is expected to spend A$30,000for the initial exploration.
Following the initial exploration, Segue will spendA$125,000 over a 12-month period for the first stage of the farm-in, inexchange for a 35% stake in the joint venture. The company will be able tosecure an additional 15% interest in the venture by completing the second stageof the farm-in, where it will spend another A$125,000 within 12 months.
According to the release, either of the two companies'interest will convert to a 1% NSR royalty if they are diluted to less than 10%.