HIGHLIGHTS
- Winsome to extend its Exclusive Option to Acquire the Renard Project to 31 December 2024 at a cost of $2 million in cash
- Option extension gives Winsome further scope to assess various commercial and corporate opportunities to reduce the costs associated with the potential acquisition
- Option extension means care and maintenance costs remain with Stornoway
- Initial work confirms the processing plant could be re-purposed at a lower cost compared to the construction of a greenfield lithium process plant and other supporting infrastructure.
- Renard project acquisition Due Diligence advancing well with Greenfield and Brownfield project studies on track for completion Q3 2024
- Mining studies, including pit designs and scheduling, and processing studies including flowsheet development and plant design advancing on schedule
VAL-D’OR, QC, Aug. 1, 2024 /CNW/ – Lithium explorer / developer Winsome Resources (ASX: WR1) (Winsome or the Company) pleased to provide an update regarding project studies underway at its 100% owned Adina Lithium Project (Adina) including due diligence activities relating to the proposed acquisition of the Renard Operation.
As previously announced1 Winsome secured an exclusive option (Option) to acquire, at its election, the assets comprising the Renard diamond mine, processing facility and associated infrastructure (Renard Operation or Renard) or all of the issued capital in Stornoway Diamonds (Canada) Inc. (Stornoway).
To inform the Company’s decision regarding exercise of the Option the Company is advancing two concurrent Scoping Study scenarios; a ‘greenfield’ study that considers Adina as a stand-alone project with entirely new infrastructure (Greenfield Scenario) and a ‘brownfield’ scenario that will incorporate the repurposing of the Renard Operation to process lithium mineralized material from Adina (Brownfield Scenario). These are intended to be completed in Q3 2024.
Additionally, the Company refers to its announcement on 3 April 2024 regarding the exclusive Option Agreement between Winsome, Stornoway Diamonds (Canada) Inc. (Stornoway) and 11272420 Canada Inc (Option) in relation to the potential acquisition (at Winsome’s election) of the Renard diamond mine, processing facility and associated infrastructure (Renard or Renard Project) or all the issued capital of Stornoway.
Since the Option was signed, Winsome has progressed both its due diligence on Stornoway and Renard, and its assessment of the potential technical, economic, environmental, and social feasibility of repurposing Renard into a lithium operation. These activities are progressing as planned, with no red flags identified to date.
As such, Winsome has elected to pre-emptively extend the Option period by 3 months from 30 September 2024 to 31 December 2024, by paying a further C$2 million in cash in accordance with the Option.
Complete details of the update on Renard project are available in the ASX press release available by following this link. https://wcsecure.weblink.com.au/pdf/WR1/02834489.pdf
“Winsome Resources is firmly committed to developing the Adina Lithium Project in a cost effective and efficient manner as we continue to develop a pathway to production aligned with our vision to integrate into the North American EV supply chain.” Chris Evans, Managing Director.
“Extending the option to acquire Renard to 31 December 2024, as was envisaged when the original option agreement was signed, provides us additional optionality to consider the various commercial and corporate opportunities available, as we advance project studies on our significant lithium project in North America” Carl Caumartin, General Manager- Canada.