The Pardoo joint venture entails the nickel and non-iron ore rights over four tenements in the Pilbara region of Western Australia, where Segue currently owns 100% of these tenements.
Under the revised farm-in agreement, Red October may earn a 50% interest in the project.
A 30% interest can be earned by spending a minimum of $1m or $250,000 on the project by the earlier of six months from the 31 December 2012.
A further 20% interest in the project can be earned by spending a further minimum total amount of $2m on the project within four years from the commencement date, the date of re-instatement of Red October to trading on the ASX.
Red October will issue Segue 11,250,000 ordinary shares in Red October while Segue currently owns 15,000,000 shares in the latter.
