Winsome Resources raises A$7.8m to advance Adina Lithium Project and extend Renard Option

Winsome Resources has reinforced its financial position with a successful A$7.8 million capital raise through an institutional share placement, ensuring the continued advancement of its flagship Adina Lithium Project. The funding also extends the company’s exclusive Renard Option extension, providing additional time to evaluate strategic partnerships and sustainability initiatives.

The strong backing from institutional investors and existing shareholders reflects growing confidence in Winsome Resources’ vision of integrating into the North American electric vehicle (EV) supply chain. The funding injection is expected to accelerate feasibility studies for Adina while allowing the company to explore long-term capital investment opportunities.

What does the Renard Option extension mean for Winsome Resources?

A key component of the financial strategy is the extension of Winsome’s exclusive option to acquire the Renard diamond mine and associated infrastructure, a decision that could significantly enhance the company’s ability to fast-track lithium production. The Renard Option extension has been secured until 31 August 2025 at a cost of C$8.5 million, providing Winsome Resources with the time needed to finalize due diligence and assess potential strategic partnerships.

Under the revised agreement, Winsome will issue five million fully paid ordinary shares to 11272420 Canada Inc. if it does not exercise the option by 31 July 2025. Additionally, a C$2 million break fee will be payable if the company decides not to proceed with the acquisition. The agreement remains subject to approval by the Superior Court of Québec, after which the funding will become non-refundable.

This extension grants Winsome Resources additional flexibility to structure its acquisition strategy, explore commercial synergies with the Adina Lithium Project, and assess the viability of integrating Renard’s infrastructure for lithium processing. The Renard site includes key operational assets such as a processing facility, an airport, a power station, and water treatment facilities—potentially reducing capital expenditure for future lithium production.

How will Winsome Resources utilize the new funding?

The proceeds from the Winsome Resources funding initiative will primarily be allocated toward advancing feasibility studies at Adina, ensuring the continued growth of one of North America’s largest lithium deposits. Additionally, the capital will be used to investigate carbon dioxide removal (CDR) opportunities, aligning with global sustainability trends in lithium extraction and processing.

The company is also actively exploring strategic partnerships with investors embedded in the EV supply chain. This approach aims to secure long-term capital investment, facilitating the transition from exploration to production. The strengthened financial position allows Winsome to maintain its aggressive growth strategy while ensuring the economic and environmental feasibility of its projects.

What are the details of Winsome’s share placement and share purchase plan?

Winsome Resources’ successful capital raise was conducted at an issue price of A$0.36 per share, reflecting a 15.3% discount to the last closing price and a 20.1% discount to the five-day volume-weighted average price (VWAP). Investors participating in the placement have been granted one free-attaching unlisted option for every two new shares subscribed, with an exercise price of A$0.54 per option and a two-year expiration period.

In addition to institutional support, Winsome Resources has launched a share purchase plan (SPP) to raise up to A$2.5 million. The plan offers eligible shareholders the opportunity to acquire shares at the same A$0.36 issue price, further strengthening the company’s cash position. The SPP remains subject to ASX regulatory approval, with final details expected to be released in the coming days.

How does Winsome Resources position itself in the lithium market?

With lithium demand surging due to global electrification trends, Winsome Resources funding ensures that the company remains well-positioned to capitalize on market opportunities. The company’s aggressive approach toward integrating into the North American EV supply chain aligns with the region’s push for domestic battery material production.

The Adina Lithium Project, recognized for its extensive spodumene deposit, is one of the most capital-efficient lithium projects in North America. The Renard Option extension further strengthens Winsome’s strategic positioning by providing access to established infrastructure, which could reduce future operational costs.

As global EV manufacturers seek to secure sustainable lithium supply chains, Winsome Resources’ ability to advance its projects with strong financial backing enhances its competitive edge. The company’s approach to securing long-term investment partnerships and assessing carbon sequestration initiatives also reflects its commitment to responsible resource development.

What’s next for Winsome Resources?

With a strengthened balance sheet, Winsome Resources funding will support continued exploration, feasibility studies, and sustainability initiatives at Adina. The Renard Option extension ensures that the company has ample time to assess the potential acquisition’s long-term benefits while pursuing strategic investment opportunities.

As the lithium sector continues to evolve, Winsome Resources remains focused on maximizing shareholder value through disciplined project execution, strategic acquisitions, and capital-efficient development plans. The company’s next phase will likely involve detailed exploration updates, potential investment partnerships, and progress toward production-readiness at Adina.