Lithium hopeful Winsome Resources launches $34m placement
Perth-based Canadian lithium junior Winsome Resources is in the market for its second multi-million capital raising this year, Street Talk understands.
Western Australia is in the midst of a lithium investment boom. Bloomberg
The miner has its broker Canaccord Genuity split the cash call into two parts: a flow-through placement to Canadian investors at $2.38 per share to raise $34.4 million and the sale of shares to institutional and sophisticated investors in Australia at $1.22 per share to raise $17.7 million. Shares last traded at $1.37.
Proceeds will be used for Winsome’s drilling program at its flagship Adina lithium project in Quebec, Canada.
Winsome, chaired by former Core Lithium boss Stephen Biggins, made the most of its 68 per cent share price rally earlier this year, putting a $45.2 million capital raising to investors in February.
The company has five hard-rock lithium assets in Quebec’s James Bay region, including its flagship Cancet and Adina. They are early-stage exploration projects, drilling to define their resources.
Winsome Resources listed on the ASX in November 2021 after an $18 million IPO priced at 20¢ a share by Canaccord Genuity, with a $28.4 million market capitalisation. It had a $234 million market cap at last close.
Canaccord Genuity was the sole lead manager and bookrunner. Euroz Hartleys acted as co-manager. They called for bids by 5pm Thursday for Asia Pacific investors and by 8am Friday for the rest of the world.
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