HIGHLIGHTS
- Exclusive Call Option signed to acquire the assets comprising the Renard Mine and associated infrastructure (Renard) or all of the issued capital in Stornoway (the 100% owner of Renard), subject to Quebec Court approval.
- If exercised, the consideration payable by Winsome for the acquisition is C$52 million, in cash, Winsome shares, or a combination thereof at Winsome’s election, as follows:
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- C$15 million, payable on closing of the proposed acquisition;
- C$22 million, payable on the 12-month anniversary of closing; and
- C$15 million, payable on the 24-month anniversary of closing.
- Winsome will use the Option Period to confirm the feasibility of repurposing Renard and identify the optimal transaction structure and negotiate terms to a proposed acquisition.
- Repurposing these infrastructures is fully in line with our sustainable development approach, an opportunity to minimize our impact on the environment by reusing an existing site.
- Winsome is committed to working with governments and all stakeholders as it undertakes due diligence and project study work to determine the suitability of acquiring Renard’s infrastructure for the entire Eeyou Istchee James Bay region.
- Adina Lithium Project’s Preliminary Economic Assessment (PEA) studies continue and remain on track for completion H2 2024.
VAL-D’OR, QC, April 3, 2024 /CNW/ – Lithium explorer / developer Winsome Resources (ASX: WR1) (Winsome or the Company) is pleased to announce it has entered into a binding agreement with Stornoway Diamonds (Canada) Inc. (Stornoway) and 11272420 Canada Inc. (together the Vendors) pursuant to which Winsome has secured (subject to Quebec Court approval) an exclusive call option (Option) to acquire, at its election, the assets comprising the Renard mine and associated infrastructure (Renard) or all of the issued capital in Stornoway.
Winsome sees the proposed acquisition as an opportunity to minimize its impact in the development of Winsome’s 100%-owned Adina lithium project (Adina), and for the eventual conversion of Renard’s existing infrastructure into a lithium processing operation. Other potential opportunities and advantages will also be studied within the next months.
The Option entitles Winsome to acquire the assets or all of the issued capital in Stornoway before 30 September 2024 unless extended (Option Period). Winsome will use the Option period to assess the potential technical, economic, environmental, and social feasibility of repurposing Renard as well as identify the optimal transaction structure and negotiate definitive documents to give effect to the proposed acquisition (Proposed Acquisition).
Complete details of the exclusive option to acquire the Renard project are available in the ASX press release available by following this link. https://winsomeresources.ca/wp-content/uploads/2024/04/20240403-Option-to-Acquire-Renard-FINAL_ENG.pdf
"We think it is a regionally strategic asset with the potential the potential to open-up access to the growing critical mineral and EV battery supply chain hub in the Province of Quebec. We look forward to continuing to work with all of Stornoway’s stakeholders in progressing the transaction to a successful outcome." Chris Evans, Managing Director.
"Recycling these infrastructures is fully in line with our sustainable development approach, an opportunity to minimize our impact in the development of the Adina project, on the environment by reusing an existing site. It would be irresponsible not to evaluate this possibility. Our priority is to reach out to all our stakeholders and discuss with them their comments and vision of this opportunity." Carl Caumartin, General Manager- Canada.
This press release has been authorized for issue by the Board of Directors of Winsome Resources Limited.
Winsome Resources (ASX: WR1) is a Perth-based, lithium focused exploration and development company with four project areas in Quebec, Canada. All of Winsome’s projects – Adina, Cancet, Sirmac-Clappier and Tilly are 100% owned by the Company. Recently the Company acquired a further 47km2 of claims at the Tilly Project, located near Adina, and 29 claims of the Jackpot Property, immediately north of Adina.
The most advanced of Winsome’s projects – Adina and Cancet, provide shallow, high grade lithium deposits and are strategically located close to established infrastructure and supply chains.
In addition to its impressive portfolio of lithium projects in Quebec, Winsome Resources owns 100% of the offtake rights for lithium, caesium and tantalum from Power Metals Corp (TSXV:PWM) Case Lake Project in Eastern Ontario, as well as a 19.6% equity stake in PWM. The Company recently divested Decelles and Mazerac, two early stage projects located near the Quebec mining town of Val-d’Or, to PWM in exchange for an increased shareholding.
Winsome is led by a highly qualified team with strong experience in lithium exploration and development as well as leading ASX listed companies. More details: www.winsomeresources.com.au
The information contained in this report refers to Winsome resources Ltd’s standards and obligations to the Australian Securities Exchange and the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code). The information should be interpreted in accordance with the Company’s legal obligations in Australia.
Amounts expressed in Canadian dollars (CAD) have been converted from amounts expressed in Australian dollars (AUS) using the Bank of Canada exchange rate in effect on April 3rd 2024 .
This document contains forward-looking statements concerning Winsome. Forward-looking statements are not statements of historical fact and actual events and results may differ materially from those described in the forward-looking statements as a result of a variety of risks, uncertainties and other factors. Forward-looking statements are inherently subject to business, economic, competitive, political and social uncertainties and contingencies. Many factors could cause the Company’s actual results to differ materially from those expressed or implied in any forward-looking information provided by the Company, or on behalf of, the Company. Such factors include, among other things, risks relating to additional funding requirements, metal prices, exploration, development and operating risks, competition, production risks, regulatory, including environmental regulation and liability and potential title disputes.
Forward-looking statements in this document are based on the Company’s beliefs, opinions and estimates of Winsome as of the dates the forward-looking statements are made, and no obligation is assumed to update forward-looking statements if these beliefs, opinions and estimates should change or to reflect other future developments.
SOURCE Winsome Resources
Featured image: Megapixl © Xtrekx
