Winsome, win some more! The ASX lithium share up 320% in 2 months

The mineral explorer has rocketed 650% in its first 12 months of trading on the ASX.

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Key points

  • The Winsome Resources share price closed at an all-time high of $1.50 yesterday
  • Winsome has soared 320% in two months following a series of positive ASX announcements 
  • The ASX lithium share has rocketed 650% since its debut in November 2021 

The Winsome Resources Ltd (ASX: WR1) share price closed at an all-time high of $1.50 yesterday.

The ASX lithium share has exploded over the past two months, rising 320% from 35.5 cents on 10 October.

What's up with Winsome (besides the share price)?

Winsome Resources is a lithium explorer working in the James Bay region of Quebec in Canada.

The latest news from the company came last Friday when it announced an acquisition.

As my Fool colleague Monica reports, Winsome is buying a stake in Canadian company Power Metals Corp (TSX-V: PWM), which owns the "highly prospective" Case Lake Project in Ontario, Canada.

The CA$2 million (A$2.211 million) deal entails Winsome purchasing Power Metals shares that are currently owned by Hong Kong-based company, Sinomine Rare Metals Resources Co Ltd.

Sinomine Rare Metals is a subsidiary of the Chinese company Sinomine Resource Group Co Ltd (SHE: 002738). Recent changes to Canadian law mean Sinomine has to sell.

Winsome also gets all of Sinomine's offtake rights.

Winsome says the project contains high-grade deposits of lithium, tantalum, and cesium. All three are on the latest critical minerals lists of the United States and Canada.

The best-performing ASX lithium share last month

Winsome's shares soared by 134% in November, outperforming every other ASX mining share.

In mid-November, Winsome announced a $6.8 million capital raising to expand its exploration
programs at the Cancet and Adina lithium projects.

This followed drilling results at Cancet that "exceeded expectations" and "exceptional high-grade lithium assay results" at Adina.

The company lodged a new investor presentation with the ASX on 4 November.

In its quarterly cash flow and activities report released on 27 October, Winsome reported it has spent $6 million of the $18 million in funds allocated under its prospectus as of 30 September.

The ASX lithium share debuted on the ASX on 30 November last year. Its initial public offering (IPO) price was 20 cents. That means the stock has rocketed 650% in its first 12 months on the ASX.

Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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