HIGHLIGHTS
- The Board of Directors of Sigma Lithium and Sigma Brazil
announce it has received multiple strategic proposals for the
Brazilian Company Sigma Mineração ("Sigma Brazil"), for the
Canadian parent Sigma Lithium Corporation (together the "Companies"
or separately the "Company") as well as for the Grota do Cirilo
Project (the "Project").
- The Companies and the Project have attracted interest from
potential strategic partners, including global industry leaders in
the energy, auto, batteries and lithium refining industries.
- The Companies have a distinct position in the lithium
industry globally as one of the "suppliers of choice" for the next
generation of electric vehicles, whose consumers are concerned with
environmentally and socially responsibly sourced materials.
- Sigma Brazil is the only
global producer of Triple Zero Green Lithium: zero carbon, zero
tailings and zero hazardous chemicals, while recirculating 100% of
the "sewage grade" water utilized in its production process.
- Sigma Lithium's strategy is fully aligned with
the decarbonization ethos of electric vehicles and of
governments worldwide.
- In reviewing the proposals received, the Board of Directors
of the Companies are deeply committed to maximizing value for all
public shareholders of Sigma Lithium, as well as for all
stakeholders, employees and communities of Sigma Brazil at Vale
do Jequitinhonha.
- As ESG-centric companies, both Sigma Lithium and Sigma
Brazil plan to adhere to the highest standards of governance in
making a final decision on any strategic initiative.
- The decision regarding the strategic path of the Companies
will be made by a shareholders' meeting of Sigma Lithium, where a
"majority of the minority shareholders" of Sigma Lithium shall cast
the deciding vote.
- In order to significantly increase the scale of
the social and environmental programs of Sigma Brazil,
the Companies incorporated the Green Lithium Institute ("Instituto
Litio Verde") and endowed it with the existing remaining "founders
royalty" which is a 1% net smelter royalty.
- We expect that any potential strategic partner of the
Companies will be committed to contribute to the success of
Instituto Litio Verde.
- Sigma Brazil has the
potential to become a catalyst in Brazil for the development of the
most sustainable industrial chemical midstream within the global
lithium supply chain.
- The Companies' Triple Zero Green Lithium coupled with their
environmental expertise in managing carbon footprint, minimizing
water and soil impacts, as well as recycling tailings are
significant competitive advantages in potentially extending their
industrial green beneficiation activities to produce Triple Zero
Green Lithium Chemicals.
SAO
PAULO and VANCOUVER,
BC, Sept. 13, 2023 /PRNewswire/ -- Sigma
Lithium Corporation ("Sigma Lithium") (NASDAQ: SGML,
BVMF: S2GM34, TSXV: SGML) and its wholly-owned subsidiary Sigma
Brazil (private), a leading global lithium producer dedicated
to powering the next generation of electric vehicles with carbon
neutral, socially and environmentally sustainable chemical-grade
lithium concentrate, announce that both Companies' Board of
Directors (together or separate, the "Board of Directors")
are evaluating potential strategic alternatives for the Companies
(the "Strategic Process").
The Companies received several proposals in relation to the
Brazilian Company Sigma Mineração ("Sigma Brazil"), for the
Canadian parent Sigma Lithium Corporation (together the "Companies"
or separately the "Company") as well as for the Grota do Cirilo
Project (the "Project"). The proposals from the potential strategic
partners differ in nature and structure and are subject to ongoing
review and negotiations.
Ana Cabral, Co-Chairperson of the
Board and CEO of Sigma Lithium, stated:
"Sigma Lithium is humbled and pleased
by the strong strategic interest in our businesses from industry
leaders in the energy, auto, battery and lithium refining
industries. Our success is driven by the relentless commitment and
tireless work ethic of our incredibly diverse team, who have been
determined from the very beginning to build the most socially and
environmentally sustainable producer of industrialized lithium
materials in the world.
We are all very proud of our unique culture
of teamwork and what we have accomplished for Brazil during the last six years. We inserted
our country in the global lithium supply chain as one of the most
sustainable lithium producers, while helping lift the people of our
region, Vale do Jequitinhonha, by delivering and attracting
billions of reais in investments. More importantly, our
accomplishments reflect the mature regulatory, commercial rule of
law and legal security for international investors in Brazil, built over decades of mining success
and overall industrialization.
Our strategic review process coincides with
our industry-first achievement of Triple Zero Green Lithium: zero
carbon, zero tailings and zero hazardous chemicals. We recently
disclosed the leaps in operational ramp-up at our Greentech lithium
plant, including the success of our pioneer environmental tailings
and water management industrial plant module, encompassing an
innovative dry stacking of tailings coupled with water
reuse.
Now as a full-fledged global producer, Sigma
Lithium's Board of Directors is conscious of its fiduciary duty and
the responsibility involved in selecting our strategic partner,
enabling Sigma Brazil to continue to take our country to the next
level in securing its vital position within the global lithium
supply chain."
The Board of Directors and management team are committed to
acting in the best interests of the Company, its public
shareholders, its employees and its community. Each alternative
will be thoroughly considered before any strategic partner is
selected or any transaction is agreed. The decision regarding the
outcome of the Strategic Process will be made at a shareholders'
meeting of Sigma Lithium, where a "majority of the minority
shareholders" of Sigma Lithium will be required for the deciding
vote.
The Company plans to conclude the Strategic Process this year,
but there can be no assurance that it will result in the completion
of any specific transaction or outcome. Nor can a definitive
timetable be set for its completion. The Company does not intend to
disclose further developments with respect to this Strategic
Process, unless and until the Board of Directors has completed its
assessment, or the Company determines that additional disclosure is
required by law or otherwise deemed appropriate. The Company
has engaged BofA Securities and BTG Pactual in Brazil as its financial advisors in connection
with the Strategic Process.
ABOUT SIGMA LITHIUM
Sigma Lithium (NASDAQ: SGML, TSXV: SGML, BVMF: S2GM34) is a
leading global lithium producer dedicated to powering the next
generation of electric vehicle batteries with environmentally
sustainable and high-purity lithium.
Sigma Lithium has been at the forefront of environmental and
social sustainability in the EV battery materials supply chain for
six years and it is currently producing Triple Zero Green Lithium
from its Grota do Cirilo Project in Brazil. Phase 1 of the project is expected to
produce 270,000 tonnes of Triple Zero Green Lithium annually
(36,700 LCE annually). If it is determined to proceed after
completion of an ongoing feasibility study, Phase 2 & 3 of the
project are expected to increase production to 766,000 tonnes
annually (or 104,200 LCE annually). The project produces Triple
Zero Green Lithium in its state-of-the-art Greentech lithium plant
that uses 100% renewable energy, 100% recycled water and 100%
dry-stacked tailings.
Please refer to the Company's National Instrument 43-101
technical report titled "Grota do Cirilo Lithium Project Araçuaí
and Itinga Regions, Minas Gerais, Brazil, Amended and Restated Technical Report"
issued June 12, 2023, which was
prepared for Sigma Lithium by Homero
Delboni Jr., MAusIMM, Promon Engenharia; Marc-Antoine Laporte, P.Geo, SGS Canada Inc;
Jarrett Quinn, P.Eng., Primero Group
Americas; Porfirio Cabaleiro Rodriguez, (MEng), FAIG, GE21
Consultoria Mineral; and Noel
O'Brien, B.E., MBA, F AusIMM (the "Updated Technical
Report"). The Updated Technical Report is filed on SEDAR and is
also available on the Company's website.
For more information about Sigma Lithium, visit
https://www.sigmalithiumresources.com/
Sigma Lithium
LinkedIn: Sigma Lithium
Instagram: @sigmalithium
Twitter: @SigmaLithium
FORWARD-LOOKING STATEMENTS
This news release includes certain "forward-looking
information" under applicable Canadian and U.S. securities
legislation, including but not limited to statements relating to
timing and costs related to the general business and operational
outlook of the Company, the environmental footprint of tailings and
positive ecosystem impact relating thereto, donation and upcycling
of tailings, timing and quantities relating to tailings and Green
Lithium, achievements and projections relating to the Zero Tailings
strategy, achievement of ramp-up volumes, production estimates and
the operational status of the Groto do Cirilo Project, and other
forward-looking information. All statements that address future
plans, activities, events, estimates, expectations or developments
that the Company believes, expects or anticipates will or may occur
is forward-looking information, including statements regarding the
potential development of mineral resources and mineral reserves
which may or may not occur. Forward-looking information contained
herein is based on certain assumptions regarding, among other
things: general economic and political conditions; the stable and
supportive legislative, regulatory and community environment in
Brazil; demand for lithium,
including that such demand is supported by growth in the electric
vehicle market; the Company's market position and future financial
and operating performance; the Company's estimates of mineral
resources and mineral reserves, including whether mineral resources
will ever be developed into mineral reserves; and the Company's
ability to operate its mineral projects including that the Company
will not experience any materials or equipment shortages, any
labour or service provider outages or delays or any technical
issues. Although management believes that the assumptions and
expectations reflected in the forward-looking information are
reasonable, there can be no assurance that these assumptions and
expectations will prove to be correct. Forward-looking information
inherently involves and is subject to risks and uncertainties,
including but not limited to that the market prices for lithium may
not remain at current levels; and the market for electric vehicles
and other large format batteries currently has limited market share
and no assurances can be given for the rate at which this market
will develop, if at all, which could affect the success of the
Company and its ability to develop lithium operations. There can be
no assurance that such statements will prove to be accurate, as
actual results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not
place undue reliance on forward-looking information. The Company
disclaims any intention or obligation to update or revise any
forward-looking information, whether because of new information,
future events or otherwise, except as required by law. For more
information on the risks, uncertainties and assumptions that could
cause our actual results to differ from current expectations,
please refer to the current annual information form of the Company
and other public filings available under the Company's profile at
www.sedar.com.
Neither the TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in the policies of the
TSX Venture Exchange) accepts responsibility for the adequacy or
accuracy of this news release.
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SOURCE Sigma Lithium