..that's what we can expect from lithium developers/explorers in the near term.
..if they make CR, they will only depress their share price further in the short term, but at least they won't have to risk not complying with loan covenants if lithium prices sag should they take out a loan instead.
Many cases, the best of companies that fail to address bankers' needs can suffer dearly from a depressed market because bankers have no mercy. Lithium hopeful Winsome Resources in $20m cash call Sarah Thompson, Kanika Sood and Emma Rapaport
Jun 13, 2024 – 7.50pm\
Perth-based Canadian lithium junior Winsome Resources was hitting up investors for a $20 million cash call on Thursday to keep exploration work ticking along at its flagship Adina project in Quebec.
A term sheet sent to fund managers said Winsome would raise $C12 million ($13.2 million) in flow-through placement to Canadian investors at a 50 per cent premium to the last close. After the deal settles, Winsome would raise roughly $8.8 million at 85¢ a share.
In tandem with the flow-through deal, it planned to raise $7 million in an institutional placement – also at 85¢ a share. Potential investors were told the proceeds would fund work at Winsome’s Quebec lithium projects, especially at Adina.
Winsome’s bosses have billed Adina as a globally significant hard rock spodumene lithium project that is top five in northern Australia and top 15 globally, according to company presentations.
Adina’s resources estimate was increased by 33 per cent last month, and another upgrade is expected in the first quarter of 2025.
Winsome listed on the ASX in November 2021 after an $18 million IPO priced at 20¢ a share by Canaccord Genuity. Its Quebec lithium projects – Adina, Cancet, Sirmac-Clappier and Tilly – were well rewarded by sharemarket investors early on. However, shares have fallen more than 36 per cent over the past 12 months.
The company had a $184 million market capitalisation before the raise, and was down to $24.6 million cash at May 31.
