Winsome Resources has signed an agreement to acquire the Renard diamond mine and its infrastructure, with plans to convert it into a processing facility for its Adina Lithium project. Subject to approval by a Quebec Court, Winsome will pay Renard owner Stornoway Diamonds a total of CAD 52 million ($38.5 million) in cash, shares in the company, or a combination of both, it said Wednesday.
The lithium miner will have until September 30 to gain approval, with the option to extend to February 28, 2025. Winsome will not assume any of Stornoway’s financial obligations other than mine rehabilitation, it noted. Stornoway will keep any remaining diamond inventory and equipment directly associated with diamond mining.
The lithium miner sees the potential to reduce its footprint by repurposing Renard’s open pit and underground mines as well as its tailings storage for lithium, it explained. Renard is located about 60 kilometers south of Adina.
In November, Stornoway announced it planned to sell Renard after the weak diamond market forced it into insolvency for the second time in four years. The miner put the deposit on care and maintenance in October, laying off 425 of its 500 employees.
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