Confidential Deals Unveiled After Winsome’s Price Spike Raises ASX Concerns

Context Behind the Trading Spike

Shares of Winsome Resources Limited (ASX – WR1) recently experienced a notable price increase and trading volume surge, prompting the Australian Securities Exchange (ASX) to issue a price query. In response, Winsome has revealed it was engaged in confidential discussions regarding two significant corporate transactions that likely influenced market activity.

Acquisition Talks with Li-FT Power

At the heart of the recent market movement is Winsome’s ongoing negotiations with Li-FT Power Ltd for a potential acquisition of the entire issued share capital of Winsome via a scheme of arrangement. The company confirmed that a scheme implementation deed was executed on 14 December 2025, signaling a formal step toward completing the transaction. This development, previously undisclosed, provides a plausible explanation for the heightened investor interest and share price volatility.

Offtake Rights Sale Agreement

Simultaneously, Winsome disclosed a binding agreement executed on 12 December 2025 with Power Metals Corp concerning the sale of its offtake rights. This deal, involving a key asset of the company, adds another layer of strategic repositioning that investors had not been privy to until the ASX inquiry. The involvement of Albemarle in discussions further underscores the significance of these negotiations within the resource sector.

Compliance and Market Integrity

Winsome confirmed it was relying on Listing Rule 3.1A to withhold announcement of these material developments until confidentiality was assured. However, the ASX’s price query suggested that confidentiality may have been compromised due to the trading patterns. The company promptly responded, affirming compliance with continuous disclosure obligations and that the board authorized the disclosure. This episode highlights the delicate balance companies must maintain between confidentiality and timely market disclosure.

Looking Ahead

While the announcement clarifies the cause of recent market activity, details on the terms and expected completion timelines of the acquisition and offtake sale remain limited. Investors will be watching closely for further updates that could materially impact Winsome’s valuation and strategic direction.