Australian miner Winsome Resources withdrew its option agreement to acquire the Renard diamond mine in Quebec last week, stepping back from a deal that was seen as key to accelerating lithium production at its nearby flagship Adina project by repurposing the Renard plant for lithium processing.  

In a press release, the company cited falling lithium prices and broader macroeconomic headwinds as the reasoning behind terminating the option, but said it remains focused on advancing Adina, and could revisit the purchase in the future.  

The Renard site, roughly 60 kilometres south of Adina, was formerly owned by Stornoway Diamonds and holds the distinction of being Quebec's first diamond mine. The site includes a processing plant equipped with a dense media separation plant, ore sorting and a grinding circuit. 

Winsome initially secured the exclusive option to acquire the site for $52 million in April 2024, with $4 million paid upfront and $1 million due at closing. The remaining amount was to be paid in instalments, and the latest extension of the option expires on August 31.  

It said in the press release that Renard remains “the most viable option in terms of operations, costs and logistics,” and said it would continue engaging with Stornoway, the provincial and federal governments and other stakeholders “to explore opportunities to work together regarding the synergies between the Adina and Renard projects.” 

Construction of the Renard mine began in 2014, with commercial production commencing in 2017. However, facing operational and financial challenges amid mounting uncertainty in global diamond prices, Stornoway suspended operations in October 2023. The mine has remained on care and maintenance since.