Photo by: Bloomberg
PERTH (miningweekly.com) – ASX- and FSE-listed lithium explorer Winsome Resources will raise A$34-million using the flow-through shares (FTS) provision under Canadian tax law.
The FTS will be placed at a price of A$2.38 a share, representing a 74% premium to Winsome’s last closing price, and the shares will be immediately on-sold through a block trade agreement to select high-quality domestic and offshore institutional investors.
“Winsome Resources is excited to announce this capital raise, and to see the high level of interest from quality investors globally,” said MD Chris Evans.
“The additional funds will allow the company to further ramp up exploration and resource drilling activities at Adina, Cancet and our other projects in Quebec as we work towards announcing a maiden resource at Adina.
“Further to our previous raise in February 2023, the Flow-Through Share provisions under Canadian tax law mean we are again able to raise capital at a significant premium to the current share price which in turn minimises dilution substantially.
“The company continues to see exciting progress and results at Adina, and that underpins our decision to pursue this raise and ambitiously expand our drill programmes prior to declaring a maiden resource and ultimately developing the projects into lithium production.”
Winsome is currently undertaking exploration and drill programmes at the Adina project, with five rigs on site operating by the end of the month. Almost 30 000 m have been drilled at Adina since October 2022. The capital raised will be used to fund acceleration of infill drilling programmes over the coming months with up to 20 000 m planned to be drilled at Adina before the new year.