Winsome is currently carrying out exploration and drill programmes at the Cancet and Adina projects and intends to use the capital raised to fund the programmes over the coming months
Australian lithium exploration and development company Winsome Resources is set to raise up to A$60m ($42.34m) to advance lithium exploration and drilling at two of its Canadian projects.
The company will raise the capital through a combination of a Flow-Through Share placement, institutional placement, and a share purchase plan for existing shareholders.
Winsome is currently carrying out exploration and drill programmes at the Cancet and Adina projects and intends to use the capital raised to fund the programmes over the coming months.
It recently received its first assay results from the Adina drilling campaign, which showed a positive lithium mineralisation of 1.34% Li2O over 107.6m.
The company intends to secure permitting to further advance the Adina discovery and pending further assay results from SGS Global, expected in the coming weeks.
Furthermore, the expanded programme aims to complete further infill and extension drilling at Adina and Cancet, along with other exploration activities throughout 2023, said Winsome.
Winsome managing director Chris Evans said: “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.
“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.”
Winsome plans to raise A$19m using the FTS provisions under Canadian tax law.
The Flow-Through Shares will be placed at A$4.18 per share, indicating a 79% premium to the last closing price of the company’s shares.
Winsome intends to sell the Flow-Through Shares immediately to select high-quality domestic and offshore institutional investors, through a block trade agreement.
Parallel with the FTS issue, the company will also carry out an institutional placement to raise A$31m at a price of A$2 per share.
In addition, it will issue a share purchase plan document to raise up to A$10m from existing shareholders at A$2 per share.
Canaccord Genuity (Australia) served as lead manager and book-runner to the capital raising, while Foster Stockbroking and Jett Capital served as co-managers.