Winsome Resources, a Perth-based company listed on the ASX as WR1, has unveiled its ambitious plan to acquire and repurpose the Renard diamond mine in Quebec, with the aim of converting the existing plant for lithium processing.
The acquisition comes with an option payment of C$4 million, providing Winsome the opportunity to purchase the Renard assets, including the processing plant previously operated by Stornoway Diamonds until December last year. Winsome’s Managing Director, Chris Evans, expressed enthusiasm for the potential transformation, citing the opportunity to acquire and repurpose the Renard assets at a considerable discount.
Under the terms of the agreement, Winsome has until September 30 to exercise its option, subject to approval by the Quebec Court. The company has the flexibility to pay C$52 million in cash or scrip upon exercising the option, with possible extensions to the timeline. Evans emphasized that Winsome will utilize the option period to conduct a thorough feasibility assessment, evaluating technical, economic, environmental, and social factors to determine the viability of repurposing the Renard plant for lithium processing.
Quebec’s burgeoning lithium spodumene discoveries have positioned the region as a key player in the global lithium market. Winsome sees the Renard acquisition as strategically significant, offering cost-efficient transport and logistics solutions for its Adina lithium project in the Eeyou Istchee James Bay region. By leveraging Renard’s existing infrastructure and permits, Winsome aims to expedite and potentially de-risk its lithium aspirations.
Renard’s infrastructure, including an airport, power station, and transportation networks, has been confirmed to be in good condition during recent site visits, further bolstering Winsome’s confidence in the acquisition.
Winsome’s strategic move aligns with its broader objective of tapping into the growing demand for lithium in electric vehicle batteries. Despite recent fluctuations in lithium prices, Winsome remains optimistic about the long-term prospects of the lithium market. The company plans to release an updated resource statement for its Adina project later this year.
Despite recent softening in its share price, Winsome remains committed to its strategic vision, poised to capitalize on the potential synergies offered by the Renard acquisition and its Adina lithium project.
As Winsome embarks on this transformative journey, stakeholders eagerly anticipate the unfolding developments that could reshape the landscape of Quebec’s mining industry and bolster Winsome’s position in the global lithium market.
