Lithium hopeful Winsome Resources is set to raise $60 million to fast track its exploration projects in Canada.
Lithium hopeful Winsome Resources is set to raise $60 million to fast track its exploration projects in Canada.
The company is raising a combined $60 million through flow-through shares, institutional placement and a share purchase plan.
The Perth-based lithium explorer made its debut on the ASX in November 2021.
It has stakes in four lithium developments in Quebec and plans to use the capital raised to fast track exploration and drill programs at its Cancet and Adina projects.
The $19 million portion will be raised through flow-through shares placed at $A4.18, which represents a 79 per cent premium to its last closing price.
A further $31 million will be raised through an institutional placement at $2 per share.
The company will also issue a share purchase plan document to raise up to $10 million from existing shareholders at $2 per share.
In November 2022, Winsome announced it was raising $6.8 million via flow-through shares at $1.67 per stock.
The funds were being raised to continue exploration work at the Cancet and Adina projects to “work towards our intention to announce maiden resources this year", the company said in the ASX announcement.
Managing director Chris Evans said they were excited to launch the capital raising.
“The additional working capital will allow the company to further ramp up exploration and resource drilling activities at Cancet and Adina as we work towards announcing maiden resources across our projects,” he said.
“Further to our previous raise in November 2022, the flow-through share provisions under Canadian tax law mean we are again able to raise capital at a premium to the current share price which in turn minimises dilution significantly.
“The company continues to see exciting progress and results at Cancet and Adina, and that underpins our decision to pursue this raise and move even more aggressively towards declaring maiden resources and ultimately developing the projects toward lithium production.”
Vancouver-based firm Canaccord Genuity will advise the capital raising.
On the market, Winsome Resources shares were down 3.43 per cent to trade at $2.25 at 2.24PM AEDT.
