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Highlights:
- Winsome said it will undertake a share placement of AU$6.8 million.
- The funds raised will be employed in the extension of drill programs at the Adina and Cancet project.
- The share price of Winsome surged by over 200% in a month.
Shares of Winsome Resources Limited (ASX:WR1) are trading in the red territory since Friday morning (18 November 2022). However, yesterday, the share price skyrocketed. Winsome’s shares closed 33.17% higher at AU$1.17 per share on 17 November 2022. Meanwhile, the ASX 200 Materials (INDEXASX:XMJ) benchmark index closed 1.17% lower at 17,272.60 points.
In the past one year, the share price has zoomed by 346.15%, and in the last one month, the shares have recorded a rise of 205.26%. Since the beginning of 2022 until now, the share price has increased by 205.26%.
Winsome is a Western Australian-based group focused on the development and exploration of lithium. The company manages five project areas in Quebec, Canada, three of which are 100% owned by Winsome. Cancet and Adina are the flagship projects that provide high-grade, shallow lithium deposits.
A potential reason behind Winsome’s share price movement
The Winsome share price is likely benefit from the lithium price surge. As of 16 November 2022, lithium carbonate was priced at 597,500.00 CNY per tonne (the Chinese yuan renminbi). In the last year, the price has increased by 202.53%, and in the last month, it has surged by 10.14%.
In addition to this, two days back, Winsome shared an update about its ongoing exploration activities and share placement.
Winsome announced that it would raise AU$6.8 million by using flow-through share provisions as per a Canadian tax law. The placement price is AU$1.67 per share, indicating a premium of 98.8% to the last closing price (10 November 2022). As reported, the funds raised will be employed to fund extensions of drill programs at the Adina and Cancet projects.
The expected date of placement settlement is 22 November 2022.
On the capital raise, Chris Evans, managing director, Winsome commented:
