Winsome secures A$25M for Adina-Renard lithium project, plan or development

Australia’s Winsome Resources (ASX: WR1) has raised A$25 million to advance its Adina lithium project in Quebec as the explorer pivots to become a project developer in the medium term.

Winsome said Monday it had secured firm commitments for the financing at an average price of A$1 (91¢) per share.

By September, Winsome has earmarked the funds for completing environmental and social impacts, infrastructure upgrades, and metallurgical studies for the Adina and Renard projects. Winsome announced in April that it had offered to buy the Renard diamond mine in Quebec, aiming to repurpose the processing plant to treat lithium ore.

The capital raise received strong backing from existing shareholders and new investors, the company said. Winsome’s Sydney-quoted shares closed at 81¢ apiece on Monday, down 16% due to broader concerns affecting the lithium market. The stock has been down 53% over the past 12 months, and Winsome has a market capitalization of A$155 million ($113 million).

The financing comes as lithium prices tread water almost three times lower than a year ago. According to Trading Economics, lithium carbonate traded at 311,363 yuan (US$43,022) per tonne, compared to about 100,000 yuan (US$13,800) on June 17.