Segue Resources (ASX:SEG) has raised $928,428 through its share purchase plan to continue drilling high priority targets at its wholly-owned Plumridge Nickel Project in Western Australia's Fraser Range Province.
Over 230 shareholders applied for 309,242,685 shares priced at $0.003, a substantial result despite the current challenging market for junior explorers.
Shares in SEG last traded at $0.004.
The company had sought to raise up to $2 million through the SPP, which includes 1 free attaching option exercisable at $0.01 on or before 31st July 2017 for every two shares subscribed.
Several stockbrokers have already expressed interest in helping place the shortfall.
Segue's initial drilling is focused on the northern cluster of targets, which will provide direct evidence of mafic-ultramafic intrusions, "fertile" litho-geochemistry and potential nickel-copper sulphides.
Plumridge is prospective for massive nickel sulphide deposits and was previously been explored for gold.
Worth noting, Sirius Resources (ASX:SIR) has this week signed an offtake agreement with Glencore International (LON:GLEN) for about half of its planned nickel sulphide production from the Nova Project for a three-year period.
Steven Michael, managing director, commented:
"The Board of Segue is delighted with the support shown by the company's shareholders in a difficult market, especially for junior exploration companies.
"Over 230 shareholders have participated in the Share Purchase Plan with approximately $1 million raised.
"The funds raised through the SPP will enable Segue to continue drill testing high priority exploration targets at the Plumridge Nickel Project."
Controlled Placement Agreement
Segue has also extended a controlled placement agreement (NYSE:CPA) with Acuity Capital Pty Ltd by 12 months.
The agreement, which was first reached on 19th September 2014, provides the company with up to $1 million of equity capital over a 12 month period.
Segue retains full control of the placement process, including sole discretion as to whether or not to utilise the CPA.
Plumridge Nickel Project
The 3,150 square kilometre Plumridge Nickel Project is located 120 kilometres northeast of the Nova nickel-copper deposit.
It covers over 10% of the Fraser Range Gravity High which represents the area of greatest nickel prospectivity.
A recent gravity survey identified 15 high priority nickel targets in two clusters that are each consistent with a mineralised district.
The targets all lie within the Transform Graben Zone (TGZ) and are consistent with the company's geological and mineral emplacement models.
Raising nearly half the funds sought through its recent SPP is a good result for Segue Resources given the current challenging market for junior explorers.
In addition, a number of stockbrokers have already expressed interest in helping place the shortfall, which could increase the funds available to the company for continued drilling at the Plumridge Nickel Project.
Further funding could come from CPA with Acuity Capital.
Reverse circulation drilling is currently underway at the project, which will provide a pipeline of news flow over the coming weeks and months.
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