Winsome says the proposed deal offers an opportunity to minimize the impact of the development of its Adina lithium project in Quebec.
The agreement also gives Winsome the option to buy the mine's owner, Stornoway Diamonds, which suspended operations at the mine last year and sought protection from creditors under the Companies’ Creditors Arrangement Act. The option agreement entitles Winsome to buy the assets or all of the issued capital in Stornoway before Sept. 30.
The company says it will use the time to confirm the feasibility of repurposing Renard's existing infrastructure into a lithium processing operation. In addition to the Adina project, Winsome is developing the Cancet, Sirmac-Clappier and Tilly projects in Quebec.
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