Perth-based Winsome Resources (ASX: WR1) plans to buy the Renard diamond mine in Quebec and transform the plant to process lithium.
The company has paid $4 million for an option to buy the assets, which could help hasten development of its Adina lithium discovery in the Eeyou Istchee James Bay region.
Renard, developed and formerly operated by Stornoway Diamonds from 2016 until December last year, contains a permitted processing plant. Winsome says it may be possible to repurpose the plant to treat lithium ore.
“Winsome has the potential to acquire and repurpose the Renard assets at a fraction of their replacement value,” Winsome managing director Chris Evans said in a release Wednesday.
The company can choose to exercise its option to acquire Renard any time after it's approved by the Quebec Court and before Sept. 30 for $52 million in cash or scrip. Extensions to the timeline are possible. Winsome would be bound to a specific payment schedule if it does exercise the option.
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