HIGHLIGHTS
- In connection with its Strategic Review Process, Sigma
Lithium has entered contractual and detailed structural
negotiations with finalists, which shall continue into the new
year.
- To achieve optimal structural flexibility and maintain
competitiveness of the Process until its conclusion, Sigma Brazil
is initiating the procedures for a primary listing of its shares on
both Nasdaq and Singapore Stock Exchange.
- Such listings can help maximize shareholder value, should
the selected alternative in its strategic review process involve
only Sigma Brazil.
- The Board does not expect the listing processes to interfere
with the conclusion of its strategic review.
- Sigma Lithium's high ESG standards, specifically Governance,
as well as minority shareholder led composition of Board of
Directors, should be mirrored at Sigma Brazil.
SAO
PAULO, Dec. 18, 2023 /CNW/ -- Sigma Lithium
Corporation ("Sigma Lithium" or the "Company")
(NASDAQ: SGML, TSXV: SGML, BVMF: S2GM34), a leading lithium
producer dedicated to powering the next generation of electric
vehicles with carbon neutral, Triple Zero Green lithium concentrate
is continuing its Strategic Review Process ("Process") into the new
year.
The Board of Directors ("Board") remains encouraged by the
direction of negotiations between Sigma Lithium and the finalists
in the Process. These parties are committed to the Process and are
actively engaged in drafting contractual documentation.
As part of this Process, the Company is announcing its intention
to initiate the procedures to list the shares of Sigma Brazil at
both Nasdaq and Singapore Stock Exchange.
- The dual listing of Sigma Brazil is solely contemplated for the
purpose of closing the strategic transaction, maximizing
shareholder value.
- All shareholders, whether holding shares of Sigma Lithium or
Sigma Brazil, would ultimately be taken out in the event of an
acquisition.
- Sigma Brazil selected a Nasdaq
listing level equal to Sigma Lithium's existing listing, to
continue to adhere to one of the highest levels of global corporate
governance and transparency in the world.
- Sigma Lithium minority shareholder led composition of Board of
Directors, should be mirrored at Sigma Brazil.
- The Board remains committed to maximizing value for all
stakeholders, especially the communities at Vale do
Jequitinhonha.
Ana Cabral, CEO commented:
"We are delighted with the overwhelming interest in our business
from some of the most admired companies in the battery materials
and electric vehicles industries globally, including automakers and
battery manufacturers. We are also honored with the direct
engagement of C-level executives and board members from the
consortiums with our leadership during this strategic process,
significantly strengthening our relationships with global leaders
and key decision makers of our industry."
Lucas Melo, Chair of the Audit Committee
complemented: "Brazil is
building thriving and globalized lithium mining and materials
industries: welcoming strategic partners from all over the world.
The country's lithium industry has already received investments
from companies headquartered in China, the United
States, Canada,
Australia and the United Kingdom. The Singaporean listing of
Sigma Brazil aims to maximize value for all shareholders of Sigma
Lithium by leveling the playing field across negotiating
parties."
Cesar Chicayban, Lead Independent Board Member
added: "As the Company is a completely ramped up producer,
we can evaluate strategic alternatives from a position of maximum
flexibility despite the current lithium cycle downturn. Sigma is
one of the largest and lowest cost producers in the industry and
reached Net Zero, achieving a key competitive advantage for the
European Battery Passport. Therefore, Sigma Lithium in parallel to
its strategic review, has been laser focused on consolidating its
position as one of the majors by concluding the detailed
engineering for its production capacity expansion plans."
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 carbon neutral,
socially and environmentally sustainable chemical-grade lithium
concentrate.
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 Grota 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