The Capital Crunch: Winsome on pathway to production via $25 million raise

This week’s first Capital Crunch sees Winsome Resources (ASX:WR1) conduct a flow-through (FT) share placement and an institutional share placement to raise $25 million. 

Under the $13.16 million FT placement, 10.32 million shares will be used at C$1.16 ($1.275) each — a 32% premium to Winsome’s last closing price. 

Under the $11.8 million institutional placement, 13.92 million shares will be issued at $0.85 each. The offer price represents an 11.9% discount to the last closing price of $0.965 per share. 

The funds will help the company advance the Adina Lithium Project into development, and continue to explore and grow Winsome’s mineral resource. 

Winsome will be expediting follow-up drilling programs across priority targets at Adina-Jackpot, Cancet, and Tilly, as well as surveys, fieldwork, and preliminary drilling campaigns across its other assets. 

Anax Metals (ASX:ANX) is also conducting a placement to raise $3 million for resource extension drilling at the Evelyn Project, and to accelerate technical studies at the Whundo and Sulphur Springs projects. 

Under the placement, 100 million shares will be issued at $0.03 each, representing a 16.6% discount to the last traded price of $0.046. 

Subscribers will be entitled to one free attaching option, exercisable at $0.06 for two years, for every two placement shares purchased. 

In conjunction, Anax has entered into an agreement with drilling services company Topdrill. Under the agreement, Anax may issue Topdrill ordinary shares in lieu of a cash payment of up to $1 million for drilling services rendered. 

Anax is expecting a drill rig to be mobilised by Topdrill to Whim Creek in the coming months. 

Upon completion of the placement, the funds will also be used to advance a Scoping Study in collaboration with Develop Global (ASX:DEV). The funds will also help advance off-take and project finance discussions towards final investment decisions for the construction and development of Whim Creek. 

Meanwhile, Vital Metals (ASX:VML) has signed an agreement to sell its stockpiled rare earth material to the Saskatchewan Research Council (SRC) for C$3 million ($3.3 million). 

The stockpiled rare earth material was derived from earlier mining on Nechalacho’s North T deposit. 

Under the agreement, 50% of the purchase price will be paid by SRC within three business days of executing the agreement, while the remaining 50% will be paid in stages within 10 days following the delivery and sorting of the inventory. 

Finally, Prospech (ASX:PRS) has raised $1.07 million via the issue of 32.47 million shares at $0.033 each. 

The funds raised will be used for further drilling and resource definition at the Korsnäs Rare Earths Project in Finland, initial exploration and potential drilling at the Pukanec Gold Project in Slovakia, and general working capital. 

The shares under the placement are expected to be allotted and begin trading on 21 June 2024. 

Write to Aaliyah Rogan at Mining.com.au   

Images: Winsome Resources
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Written By Aaliyah Rogan
Relocated from the East Coast in New Zealand to Queensland Australia, Aaliyah is a fervent journalist who has a passion for storytelling. When Aaliyah isn’t writing stories, she is either spending time with friends and family or down at the beach.