The four-year-old, 250,000 tonne per annum copper-cobalt leaching plant was built at a reported cost of US$80 million but was mothballed in 2016.
Winmar says the facility only requires four to six months and a $500,000 upgrade of the crushing and leaching circuit.
An expansion to 1 million tonnes per annum will also be studied.
The junior will pay $5.5 million and issue 100 million shares to secure its position initially.
It will issue 100 million additional shares once the facility sells more than 1,000t of contained cobalt in concentrate.
A further $1.2 million in cash will be used to acquire a 100% interest in six nearby exploration licenses covering some 500sq.km, with 20 million shares to be issued upon the transfer of the licences to Winmar and $15 per tonne of ore mined to be paid on production commencing.
The licences and other acquisition opportunities including nearby cobalt tailings projects or the purchase of third party high-grade cobalt feed will be used to feed the plant.
The company has over-commitments for an $8 million capital raising, including a combined $2.3 million from chairman Jason Brewer and strategic advisor Airguide International.
Winmar has extended its trading suspension to give it sufficient time to prepare a more detailed announcement on the acquisition and re-comply with all ASX listing rules.