Winsome Resources Secures A$25M To Advance Adina Lithium Project

Winsome Resources Ltd (ASX:WR1) has secured A$25 million in funding to advance its Adina Lithium Project in Canada into development.

The funding is through firm commitments from investors in a flow-through share (FTS) placement and an institutional share placement.

Importantly, the strong support from existing shareholders and new investors underpins Winsome’s pathway to production.

Updated resource

Winsome recently revealed an updated Mineral Resource Estimate (MRE) for Adina.

Read: Winsome Resources Upgrades Lithium Tonnage At Adina

The upgrade has increased the tonnage by 33% to 77.9 million tonnes (Mt) at an improved grade of 1.15% Li2O.

This corresponds to 2.21Mt Lithium Carbonate Equivalent (LCE) and confirms Adina’s positioning as one of the largest undeveloped lithium deposits in the world.

Drilling continues at Adina focussing on extensions to mineralisation identified in the MRE.

Project development

In parallel with exploration and resource delineation drilling, the company is advancing the development of Adina via two concurrent project studies, namely a Greenfield scenario where a purpose-built lithium processing plant would be constructed at a greenfields site at Adina and a Brownfield project study where the billion-dollar Renard processing plant and associated infrastructure would be repurposed for lithium concentrate production.

High level of interest from investors

Winsome Managing Director Chris Evans said: “Winsome Resources is firmly committed to developing the Adina Lithium Project and is pleased to see the high level of interest from high conviction investors who believe in Winsome’s vision of integrating into the North American EV supply chain.

“The flow through financing provisions under Canadian tax law mean we are again able to raise funds at a significant premium to the current share price and therefore at a lower cost of capital.

“The additional funds put Winsome in an enviable position, with one of the largest and growing lithium deposits in North America, an exclusive option to acquire the billion-dollar Renard operation and associated infrastructure and a clearly defined pathway to production.”

 

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