Lithium exploration and development company Winsome Resources (ASX:WR1; “Winsome” or “the Company”) refers to the option agreement the Company entered into with Mr Andrew Sostad and Mr Christopher Sostad (together, the Optionors”) announced on 8 June 2023 (“Option Agreement”), pursuant to which the Company was granted the option to acquire the strategic Jackpot Property, located immediately to the north of the Company’s existing Adina Project (“Option”).

HIGHLIGHTS

• Winsome exercises option to acquire the Jackpot Property, located immediately north of the Adina Project, increasing project area by over 50%.
• On completion, Winsome’s footprint at Adina will expand to 43km², opening up further exploration targets as well as providing flexibility in site layout and infrastructure as development progresses.
• Landholding in the world class James Bay region increase to over 870km².

Winsome is pleased to announce that, pursuant to the terms of the Option Agreement, it has opted to accelerate the exercise of the Option by issuing the Optionors 250,000 Shares and making a C$150,000 cash payment.

Winsome’s footprint of the Adina Project will accordingly increase to 43km², and Winsome’s tenure in the James Bay area to over 871.5km², maintaining its position as one of the largest landholders in this highly prospective region.

Further Payments

If either of the following milestones are satisfied within 24 months of the exercise of the Option, Winsome will issue the Optionors a further 100,000 Shares:

• should Winsome collect five (5) or more rock chip samples containing >1% Li₂O from sites at least 100m apart within the Property; or
• should Winsome complete a drill program within the property and intersect at least 5m at >1% Li₂O in three or more holes.

For clarity, 100,000 Shares will be on the satisfaction of either of these milestones, no further Shares will be issued if the other milestone is subsequently satisfied.

The Optionors will retain a 2% net smelter returns royalty (Royalty) over any commercial mineral production from the Project. Winsome has the right to purchase half (being 1.0%) of the Royalty at any time from the Optionors for C$1,000,000, payable in cash.

For the purposes of Listing Rule 10.11, the Company confirms that the Optionors are not related parties of the Company.

Further information with respect to the Jackpot Project and the Option Agreement is set out in the Company’s announcement dated 8 June 2023.

Click here for the full ASX Release

This article includes content from Winsome Resources, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.