Winsome Resources Limited (ASX: WR1), founded in 2021, is a lithium exploration and development company headquartered in Perth, Western Australia. The company operates a portfolio of high-potential lithium projects in Eeyou Istchee James Bay, Québec, a key region for North America’s battery supply chain. Winsome is focused on advancing exploration, expanding its resource base, and fast-tracking project development to support the electric vehicle and renewable energy industries. Its strategy includes securing strategic partnerships, leveraging government incentives for local lithium supply, and positioning itself as a key player in the North American lithium market. Currently, Winsome shares are trading at $0.32 per share.
Capital Raise to Drive Project Development
The $7.8 million placement was well-supported by institutional and global investors, underscoring confidence in Winsome’s strategy. The issue price of $0.36 per share represents a 15.3% discount to the last traded price of $0.425 and a 20.1% discount to the 5-day VWAP.
Participants in the placement receive one free-attaching option per two shares subscribed, with an exercise price of $0.54 and expiry in two years. The settlement of the placement is scheduled for 20 February 2025, with shares ranking equally with existing issued capital.
Alongside the placement, Winsome is offering a $2.5 million share purchase plan (SPP) to existing shareholders, allowing them to buy up to $30,000 worth of shares at $0.36 per share, on the same terms as institutional investors. The SPP remains subject to ASX waiver approvals and regulatory clearance before launch.
Advancing the Adina Lithium Project and Renard Option
The funds raised will be directed towards the Adina Lithium Project, with Winsome aiming to fast-track technical studies and permitting to move the project toward production. The company is also extending its Renard Option, which now expires on 31 August 2025, at a cost of C$8.5 million.
Securing this extension allows Winsome more time to assess carbon sequestration opportunities, explore potential partnerships with major battery and EV manufacturers, and evaluate capital-efficient strategies to integrate Renard with Adina. The company is actively seeking a long-term strategic partner to provide financial backing for the project’s development, aligning with North America’s push to secure local lithium supply chains.
Positioning for Growth in the North American Lithium Market
With the lithium market expected to grow significantly, Winsome Resources is strategically positioned to benefit from North America’s drive to reduce reliance on Chinese lithium processing. The Inflation Reduction Act in the US and government incentives in Canada are supporting the development of local battery supply chains, creating favourable conditions for lithium developers like Winsome.
The Adina Lithium Project stands out due to its high-grade spodumene mineralisation, near-surface deposits, and proximity to infrastructure. The potential acquisition of the Renard Operation would further enhance its economics by reducing upfront capital costs and leveraging existing mining and processing facilities.
With this capital raise, Winsome has strengthened its balance sheet, extended its strategic options, and reinforced its commitment to becoming a key supplier of lithium for the North American EV market. As development progresses, investors will be closely watching for further resource upgrades, feasibility study results, and potential strategic partnerships that could accelerate Winsome’s pathway to production.