WINSOME RESOURCES COMPANY UPDATE
WINSOME RESOURCES COMPANY UPDATE |
| [17-June-2025] |
HIGHLIGHTS
MONTREAL, June 17, 2025 /PRNewswire/ - Lithium explorer and developer Winsome Resources (ASX: WR1); "Winsome" or "the Company") provides the following update to shareholders. As the global lithium market faces volatility and broader macroeconomic uncertainties persist, Winsome is reassessing its strategic priorities. This includes evaluating ongoing and future commitments, particularly the option over the Renard operation and associated infrastructure ("Renard", the "Renard Option") and ensuring the Company's capital is deployed effectively to maximise shareholder value. The financial commitment to both acquire and maintain Renard represents a significant deployment of capital at a time when a number of industry peers are reducing or deferring capital investments. While Winsome remains committed to its key focus, developing the Adina Lithium Project ("Adina" or "the Project"), evolving market conditions have led to a necessary reassessment of capital-intensive decisions, such as exercising the Renard Option, until clearer market dynamics emerge. Winsome is closely monitoring broader market developments in the energy and battery metals sectors, assessing potential complementary opportunities aligning with its expertise and long-term objectives. This balanced approach ensures Winsome is well positioned to navigate sector uncertainties while staying focused on the development of its flagship Adina Lithium project, which remains central to its strategy. Renard Option and Engagement with Stornoway To this end, while no final decision has been made, given the current market conditions and broader sector uncertainty, including delays in capital investment decisions, Winsome's present position is it is unlikely it will exercise the Renard Option in its current form unless there is a significant improvement in the context. Any final decision on the exercise of the Renard Option will be made by Winsome by the end of August 2025. Winsome is actively engaging with Stornoway, the Quebec and Canadian governments and other key stakeholders and remains committed to collaborating in good faith to exploring opportunities to work together in a collaborative manner. Winsome believes as long as the Renard site is not sold or rehabilitated, the Renard opportunity is expected to remain available to the Company and may be revisited in the future. Winsome will keep shareholders updated with respect to the Renard Option in accordance with its disclosure obligations. "While we face challenging market conditions, Winsome remains committed to delivering value for our shareholders. Winsome's Directors have successfully navigated previous lithium market cycles to deliver lithium projects into production, and we see huge upside for Winsome through advancing the Adina Lithium Project towards development and production in a timeframe aligned with lithium market recovery. While the Renard Option remains on the table, we are realistic about current market dynamics and as a result it is unlikely Winsome will exercise the option unless conditions improve." Chris Evans, Managing Director. Adina Lithium Project Progression Winsome's primary focus remains developing the lithium resource at Adina, which continues to progress towards key development milestones. Winsome is focused on maintaining flexibility in the Project's development approach, allowing for adaptations based on the prevailing market conditions and available capital. The near surface, high grade nature of mineralisation at Adina ensures the project remains an attractive development opportunity. The Company continues to explore potential partnerships and funding avenues to advance Adina and maximise its long-term potential. To learn more about Winsome Resources, follow the link to the ASX release of June 17th 2025, This press release has been authorized for issue by the Managing Director of Winsome Resources Ltd, Chris Evans. ABOUT WINSOME RESOURCES Winsome Resources (ASX:WR1) is a lithium focused exploration and development company with several projects in the Eeyou Istchee James Bay region of Quebec, Canada. Our flagship project is Adina - a 100%-owned lithium resource considered a tier-one asset in a low-risk mining jurisdiction and one of the most capital efficient projects in North America with competitive operating costs. The hard rock spodumene lithium deposit is near surface with a +20-year project life and a NI 43-101 compliant Mineral Resource Estimate comprising a tonnage of 60.5 million tonnes at a grade of 1.14% Li2O in the Indicated category and 15.9 million tonnes at a grade of 1.17% Li2O in the Inferred category. The Company acquired an exclusive option to purchase the Renard Operation in April 2024; a mining and processing site located approximately 60 kilometres south (in a straight line) of Adina. The Renard Operation has an established airport, power station, water treatment plant, workshops, processed mineralised material storage and a substantial camp. It also has several mineral processing and operating permits which may advance Winsome's pathway to lithium production. Importantly Renard already includes extensive production facilities which consists of a primary jaw crusher, secondary cone crusher, high-pressure grinding rolls, ore sorting, and DMS circuits necessary for lithium processing and spodumene concentrate production. In addition to its impressive portfolio of lithium projects in Quebec, Winsome Resources owns 100% of the offtake rights for lithium, caesium and tantalum from Power Metals Corp (TSXV:PWM) Case Lake Project in Eastern Ontario, as well as an equity stake in PWM (together with a right to be issued a further 17,650,000 common shares in PWM on completion of the sale of the Decelles and Mazerac projects). Winsome is led by a highly qualified team with strong experience in lithium exploration and development as well as leading ASX listed companies. More details: https://winsomeresources.ca/en/ CAUTION REGARDING FORWARD-LOOKING INFORMATION This document contains forward-looking statements concerning Winsome. Forward-looking statements are not statements of historical fact and actual events and results may differ materially from those described in the forward-looking statements as a result of a variety of risks, uncertainties and other factors. Forward-looking statements are inherently subject to business, economic, competitive, political and social uncertainties and contingencies. Many factors could cause the Company's actual results to differ materially from those expressed or implied in any forward-looking information provided by the Company, or on behalf of, the Company. Such factors include, among other things, risks relating to additional funding requirements, metal prices, exploration, development and operating risks, competition, production risks, regulatory, including environmental regulation and liability and potential title disputes. Forward-looking statements in this document are based on the Company's beliefs, opinions and estimates of Winsome as of the dates the forward-looking statements are made, and no obligation is assumed to update forward-looking statements if these beliefs, opinions and estimates should change or to reflect other future developments.
SOURCE Winsome Resources | ||
Company Codes: Australia:WR1, TorontoVE:PWM |
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