- Winsome Resources (WR1) enters an exclusive option agreement to expand its lithium footprint in Quebec, Canada
- The company is acquiring 259 claims, covering 149 square kilometres in the Mazérac region which follows a recent option deal to acquire 669 claims in the Decelles region
- As part of the agreement, Winsome is paying an upfront fee of $75,000 in shares and $250,000 worth of shares across three tranches
- Winsome has begun compiling data and undertaking a review of the claims ahead of field exploration
- WR1 shares are down 5.56 per cent and are trading at 42.5 cents
Winsome Resources (WR1) has entered an option agreement to expand its lithium footprint in Quebec, Canada by nearly 40 per cent.
The company entered the exclusive agreement to acquire 258 claims from geology specialist Glenn Griesbach and one claim from local prospector Marc de Keyser.
The claims cover a total area of 149 square kilometres within the prospective Mazérac region, further expanding Winsome’s footprint in Quebec.
At the end of January, Winsome Resources executed an option agreement, also with Mr Griesbach, to acquire 669 claims. The claims cover 385 square kilometres and are located within the Decelles region.
Like the previous agreement, this deal grants the company exclusivity to explore and subsequently acquire the claims over a 24-month period.
WR1 Managing Director Chris Evans said he was delighted to have entered the option agreement.
“There has been a considerable amount of recent lithium focused activity in the surrounding region, with several public and private companies making successful discoveries,” Mr Evans said.
“By acquiring this project, we significantly increase the company’s prospective lithium landholding in Quebec and continue towards achieving our vision of supplying high grade lithium products into the North American battery supply chain.”
Under the agreement with Mr Griesbach, Winsome will pay an upfront fee of $75,000 in shares and $250,000 paid in three tranches of WR1 shares which are based on the five-day volume-weighted average price from last week’s trading which was 47 cents.
Additionally, the company will pay a two per cent net smelter royalty (NSR) over the properties which can be reduced to one per cent at any time for a $1 million consideration.
Once the final payment of 175,000 WR1 shares is made, the 259 claims will transfer to Winsome’s Canadian subsidiary.
As a separate transaction, Winsome paid Mr de Keyser C$20,000 (A$22,028) to outrightly acquire the ‘Nippy Hill’ claim which neighbours the other Mazérac claims.
The company has commenced compiling data and undertaking a review of the claims ahead of fieldwork.
WR1 shares were down 5.56 per cent and were trading at 42.5 cents at 11:49 am AEST.