Winsome Resources To Gain Access To Permitted Processing Facility In Québec

Canadian focussed Winsome Resources Ltd (ASX: WR1) has optioned to acquire the Renard Mine and associated infrastructure, located in the Eeyou Istchee James Bay region of Québec.

Renard is located 60 kilometres south of Winsome’s wholly-owned Adina Lithium Project.

With a resource of 59 million tonnes at 1.12% lithium, the company is working toward an updated resource on track for the first half of 2024.

Adina is a globally significant hard rock spodumene lithium project, ranking in the top 6 in North America and the top 20 globally.

About Renard

The first processing of ore at Renard was in 2016 as a diamond operation up until the end of 2023 and has a design capacity of 2.2 million tonnes per annum.

The transformation opportunity is that Winsome believes the plant is capable of being repurposed to treat lithium-bearing material from Adina, and other lithium deposits in the region.

Renard has a range of mineral processing and operating permits that may advance Winsome’s pathway to lithium production.

The plant consists of a dense media separation, upfront jaw, cone, high-pressure grinding rolls, and ore sorting circuits necessary for spodumene concentrate production.

Option details

The company will pay a C$4 million option fee in cash and may exercise this during the period following Québec Court approval until the 30th of September 2024.

This may be extended for 3 months by paying C$2 million in cash, and by a further 2 months for an additional C$2 million in cash.

Should Winsome elect to exercise the option the key terms of the proposed acquisition would have consideration of C$52 million payable in cash, Winsome shares, or a combination of both.

With this potential acquisition of Renard, in which over C$900 million of capital has been invested, comes the ability to materially reduce upfront capital expenditure, project risk, and footprint at Adina.

Transformative potential

Chris Evans, managing director, said the Renard project, processing plant, and associated infrastructure have the potential to be transformative for Winsome’s shareholders.

“It would give us access to a fully permitted, recently operated processing facility that utilises similar steps as a spodumene concentrate dense media separation processing operation.

It is a regionally strategic asset with the potential to provide a cost-efficient transport and logistics solution for Winsome’s 59 million-tonne lithium mineral resource at Adina.

This would open up year-round road and rail access to the growing critical mineral and EV battery supply chain hub in nearby Bécancour, Québec.

If the option is exercised, then Winsome has the potential to repurpose the Renard assets at a fraction of their replacement value.

The company is extremely well-funded with A$53 million in cash at the end of 2023, with no debt.

 

Articles of Interest