Winsome to acquire Renard diamond mine

Winsome has secured (subject to Superior Court of Québec (Court) approval) an exclusive option to acquire, at its election, the assets comprising the Renard diamond mine, processing facility and associated infrastructure or all of the issued capital in Stornoway.

Winsome sees the proposed acquisition as an exciting opportunity to advance the development of Winsome’s 100% owned Adina Lithium Project, and potentially other lithium deposits in the region, by exploring the possibility of repurposing the existing infrastructure at Renard into a lithium processing operation.

Winsome will use the option period to assess the potential technical, economic, environmental, and social feasibility of repurposing Renard, as well as identify the optimal transaction structure and negotiate definitive documents to give effect to the proposed acquisition.

Highlights:

• Exclusive Option Agreement signed to acquire the assets comprising the Renard Mine and associated infrastructure or all the issued capital in Stornoway, subject to Québec Court approval. Renard is located circa. 60 km south of Winsome’s 59 million t lithium mineral resource at Adina.
• Renard processed first ore in 2016 and operated as a diamond operation until 4Q23. The Renard process plant has a design capacity of 2.2 million tpy and Winsome believes is potentially capable of being repurposed to treat lithium bearing material.
• Renard’s process plant consists of dense media separation, upfront jaw, cone, high-pressure grinding rolls and ore sorting circuits necessary for spodumene concentrate production.
• Renard has a range of mineral processing and operating permits that may advance Winsome’s pathway to lithium production at a previously operating, brownfields site in Quebec and facilitate growth in the Canadian EV battery supply chain.
• Potential acquisition of Renard, in which over CAN$900 million of capital has been invested, has the ability to materially reduce upfront capital expenditure, project risk and footprint at Adina.
• Winsome will pay a CAN$4 million Option fee in cash and may exercise the Option during the period following Québec Court approval the Option until 30 Sep 2024, unless extended.
• The Option Period will be used to confirm the feasibility of repurposing Renard, as well as determining the optimal transaction structure, and negotiating definitive transaction agreements.
• Winsome is committed to working with the government and community stakeholders as it undertakes further studies to unlock strategic infrastructure in the Eeyou Istchee James Bay region.

Winsome’s Managing Director, Chris Evans, said:

“Should we exercise the Option, the Renard project, processing plant, and associated infrastructure has the potential to be transformative for Winsome’s shareholders.

“It would give us access to a fully permitted, recently operated processing facility that utilises similar steps as a spodumene concentrate dense media separation processing operation, and de-risk project development by materially reducing capital cost.”

“Furthermore, it is a regionally strategic asset with potential to provide a cost-efficient transport and logistics solution for Winsome’s 59 million t Lithium Mineral Resource at Adina, by opening up year-round road and rail access to the growing critical mineral and EV battery supply chain hub in nearby Bécancour, Québec.”

“The Renard assets are in incredibly good condition, having been operating for less than a decade since processing first material in 2016.”

“Winsome has the potential to acquire and repurpose the Renard assets at a fraction of their replacement value.”

“Existing infrastructure includes an operating airport, power station, maintenance workshop and warehouse, water treatment plant, tailings storage, camp and office buildings, all within 60 km of our world-class Adina project.”

We look forward to continuing to work with all of Stornoway’s stakeholders in progressing the transaction to a successful outcome.”

Read the article online at: https://www.globalminingreview.com/mining/03042024/winsome-to-acquire-renard-diamond-mine/