Winsome Raises A$7.8m, Advances Adina ESIA, and Secures C$8.5m Renard Option Extension

Strategic Capital Management Amid Market Challenges

Winsome Resources Limited (ASX:WR1) reported a disciplined approach to capital preservation during the March 2025 quarter, responding to subdued lithium market conditions marked by price softness and supply-demand imbalances expected to persist through the year. The company ended the quarter with a robust cash position of A$19.1 million, bolstered by a recent A$7.8 million capital raise and partial divestment of its Power Metals Corp shareholding. Cost containment measures included a 25% reduction in directors’ remuneration, workforce rationalisation, and office closures, all aimed at safeguarding financial flexibility while maintaining core project momentum.

Progressing the Adina Lithium Project’s Regulatory and Feasibility Pathways

Central to Winsome’s development strategy remains the Tier-1 Adina Lithium Project in Quebec, which boasts a substantial mineral resource estimate of 78 million tonnes at 1.15% Li2O. The company advanced regulatory processes by submitting the Preliminary Information Statement (PIS) to Quebec authorities, formally initiating the provincial Environmental and Social Impact Assessment (ESIA). Baseline environmental studies are on track, with feedback from the Environmental and Social Impact Evaluating Committee (COMEV) anticipated in the June quarter. Concurrently, targeted trade-off studies, including logistics, underground mining options, and cold care and maintenance scenarios, are refining the upcoming Feasibility Study scope, with Quebec’s 2025 Budget incentives under review for potential financial uplift.

High-Grade Cesium and Lithium Discovery at Sirmac-Clapier

Exploration activities yielded a significant new discovery at the Sirmac-Clapier Project, where outcropping spodumene-bearing pegmatites returned assays up to 5.44% Cs2O and 3.0% Li2O. The cesium mineralisation, likely hosted as pollucite, is notable given the global scarcity of cesium deposits, with only three historically mined worldwide. This discovery expands Winsome’s strategic critical minerals portfolio and adds a compelling dimension to its Quebec holdings, which now cover over 41 square kilometres at Sirmac following recent low-cost claim acquisitions.

Renard Operation Option Extended with Strategic Flexibility

Winsome extended its exclusive option to acquire the Renard Operation to August 31, 2025, following a C$8.5 million payment. The amended agreement includes a C$2 million break fee and provisions for deferred consideration and share issuance if the option is not exercised by July 31. The company is actively exploring partnership opportunities to share capital requirements and mitigate risk. Renard’s potential integration offers synergies by reducing upfront capital expenditure and environmental footprint at Adina, while also serving as a platform for Winsome’s innovative carbon sequestration initiatives.

Pioneering Carbon Sequestration and Sustainability Initiatives

Winsome is advancing a pioneering carbon strategy focused on leveraging Renard’s processed kimberlite stockpiles for carbon dioxide removal (CDR). An independent assessment by Dr. Liam Bullock identified significant CDR potential, estimating up to 458 kg CO2 removal per ton of rock via alkalinity generation. The company is progressing test work to validate these findings and develop a technoeconomic roadmap, aiming to position Renard as a dual-use hub combining lithium production with cutting-edge carbon capture technologies. This approach aligns with emerging voluntary carbon markets and government incentives, potentially creating new revenue streams while enhancing environmental credentials.

Corporate and Community Engagement

Winsome maintained strong community engagement with Cree Nation representatives and regional stakeholders, participating in key mining and economic forums in Eeyou Istchee James Bay. Health and safety remained a priority with no reportable incidents during the quarter and integration of best practices from historical Stornoway operations at Renard underway. The company also managed corporate governance with board changes, including the resignation of Chris Evans from Power Metals’ board, while retaining strategic influence.