Winsome Resources to Transform Renard Diamond Plant into Lithium Facility in Quebec

Winsome Resources has recently signed an exclusive purchase option, subject to the approval of the Court of Quebec, to acquire either the assets of the Renard mine or the entire issued capital of Stornoway, the 100% owner of Renard. Situated approximately 60 kilometers south of the Adina Lithium project, Renard holds significant promise for the burgeoning lithium sector. The Adina Lithium project boasts an estimated 59 million tonnes of inferred lithium resources at 1.12% Li2O.

Renard, which commenced operations and ore processing in 2016, has a history of diamond mining until the fourth quarter of 2023. The processing plant at Renard boasts a design capacity of 2.2 million tonnes per year and presents a compelling opportunity for repurposing to process lithium-containing spodumene. Equipped with essential infrastructure including a dense media separation system, mining jaw crushers, cones, high-pressure grinding rolls, and ore sorting capabilities, the Renard processing plant lays a strong foundation for spodumene concentrate production.

Winsome Resources eyes Renard as a pivotal asset in advancing its lithium production endeavors. With existing permits for mineral processing and exploitation, Renard's integration into Winsome's operations could catalyze the growth of Canada's electric vehicle battery supply chain. The strategic location of Renard, amidst Quebec's mining operations, further enhances its appeal, potentially contributing to the province's economic development.

Recent visits by Winsome's management and technical teams to the Renard site have underscored the quality of its infrastructure. Renard boasts an operational airport, power plant, maintenance workshops, warehouse facilities, water treatment plant, mine tailings deposition site, and administrative buildings. Additionally, a well-established 4-season access road connects the site to the provincial road network and the national railway system, facilitating seamless transportation of resources to key destinations such as Bécancour and major ports along the St. Lawrence Seaway.

The potential acquisition of Renard represents a substantial opportunity for Winsome, leveraging the extensive investments totaling over CA$900 million already made in the project. This strategic move could significantly reduce initial capital expenditures and mitigate associated risks, offering a more streamlined pathway for the Adina project.

Under the terms of the agreement, Winsome will pay an option fee of CA$4 million in cash and has until September 30, 2024, to exercise the option, subject to extension. The option period can be extended by three months until December 31, 2024, with a cash payment of CA$2 million. An additional extension of two months until February 28, 2025, is possible with an extra cash payment of CA$2 million.

Winsome remains committed to engaging with various government and community stakeholders as part of its due diligence and project studies. Assessing the feasibility of repurposing Renard and enhancing strategic infrastructure in the Eeyou Istchee Bay-James region is integral to Winsome's vision for sustainable growth and development in the Canadian lithium sector.