Shares in MetalsTech spinout Winsome Resources have risen 30 per cent on its first day of trading, as the hard rock lithium aspirant readies for exploration.
Shares in MetalsTech spinout Winsome Resources have risen 30 per cent on its first day of trading, as the hard rock lithium aspirant readies for exploration.
West Perth-based Winsome is the spinout of MetalsTech's Cancet, Adina, and Sirmac-Clappier projects, which are located within the James Bay mining region of Quebec.
Winsome listed on the ASX this morning with a market capitalisation of more than $28 million, having earlier closed an $18 million initial public offering.
The IPO was priced at 20 cents a share and led by Canaccord Genuity.
Winsome's shares were trading as high as 29 cents before closing at 26 cents this afternoon, implying a market cap of nearly $37 million.
The company will allocate some of the IPO proceeds toward exploration, with plans to define a maiden resource at any one of its projects of at least 5 million tonnes with a grade of 1 per cent lithium oxide.
Cancet, a shallow, high-grade lithium deposit located close to existing infrastructure and supply chains, is Winsome’s most advanced asset.
Managing director Chris Evans, also an executive director of MetalsTech, said it was an exciting time to be exploring for lithium.
“Current trends show up to 10 times more lithium is required in the next decade to meet the demand and it is going to require a huge investment to get there,” he told the market.
“With more than 99 per cent of the world’s lithium reserves located in Australia, Argentina, Chile and China, our projects offer jurisdictional diversity and opportunity to contribute to the expanding North American battery industry.”
Plans for a lithium demerger were announced in March, with MetalsTech having said it would instead focus on developing its Sturec gold project in Slovakia.
The company's shareholders were prioritised in Winsome's IPO, having received 45 million of the 75 million shares issued.
Additional IPO proceeds will be used to fund administration costs and working capital, as noted in Winsome's prospectus.
The company's board also includes non-executive chairman Justin Boylson and technical non-executive director QingTao Zeng.
Peter Youd is chief financial officer and company secretary.
