Winsome Resources has signed an agreement to acquire the Renard open pit and underground mines and its infrastructure for use as lithium tailings storage.
According to the company, Stornoway Diamonds, the previous owner of the mine in Canada's Quebec province, will retain any remaining diamond inventory and equipment directly associated with diamond mining. The bankrupt diamond miner will also be responsible for the financial obligations apart from mine rehabilitation.
Subject to approval by a Quebec Court, Winsome will pay Stornoway a total of CAD 52 million ($38.5 million) in cash, shares in the company, or a combination of both.
“Winsome’s intention is not to continue mining diamonds at Renard, which was already deemed uneconomic by Stornoway,” the spokesperson cited by JCK Online says.
“Rather, it plans to repurpose the site and existing processing infrastructure to assist permitting, development, and ultimately processing of lithium from Winsome’s nearby Adina Lithium Project. This will minimize environmental impacts and provide a significant capital investment head start for [Winsome], given the value of infrastructure and equipment at Renard, should the acquisition go ahead.”
Stornoway was producing diamonds at Renard from 2017. In the fourth quarter of 2023 it shut down due to the weak diamond market which forced the company into insolvency for the second time in four years.
Theodor Lisovoy, Editor in Chief of the European bureau, Rough&Polished
