Sigma Lithium Resources Corporation (“Sigma” or the
“Company”) (TSXV: SGMA) (OTC- QB: SGMLF) is
pleased to announce that it has closed its previously announced
upsized non-brokered private placement and has issued 8,285,700
common shares (the “
Common Shares”) at a price of
C$2.15 per Common Share for gross proceeds of approximately US$13.3
million (equivalent to approximately C$17.8 million) (the
“
Offering”). No warrants were issued in connection
with this Offering.
The Offering book was oversubscribed and it was
comprised, in its majority by leading global institutional
investors. Other participants included mainly large global family
offices. The investors in the Offering have a strong focus on ESG
and sustainability, therefore are closely aligned in purpose with
Sigma’s commitment to an ESG-centric strategy for the development
of the Grota do Cirilo lithium project in Brazil (the
“Project
The Company intends to use the net proceeds of
the Offering for the engineering, procurement and construction (the
“EPC”) of the Project and for general corporate purposes. The
amount raised in the Offering will fully satisfy the equity funding
requirement for the previously announced US$45 million project
finance facility with Société Générale. These amounts will be
complemented by the US$27 million that remains to be disbursed
under a production prepayment agreement with Mitsui & Co. as
well as by the proposed financing from the Spanish Export Credit
Insurance Agency (CESCE) for the front-end engineering design EPC
contract in order to fully fund the Project’s total capital
expenditures to commercial production estimated at US$82 million,
including US$8 million in working capital for the commissioning
period.
Cormark Securities Inc. and National Bank
Financial Inc. acted in the Offering as financial advisors to the
Company and will receive an average finder’s fee of 7% in respect
of certain orders. Other parties, including the A10 Group (as
defined below), shall also receive a finder’s fee of up to 7% in
connection with certain orders procured by these parties. The
“A10 Group” is a group of registered financial
advisory firms located in Brazil of which certain of the
directors/officers of the Company are partners.
“We are truly delighted with the outcome of this
oversubscribed equity offering and the support for the Company by
this group of global institutional shareholders and family offices
focused on ESG and sustainable investments. The offering was
completed amidst these unprecedented times and the lowest pricing
environment for lithium in the past decade, therefore demonstrating
the superior quality and low-cost of our Project”. said Co-Chairman
and Chief Strategy Officer Ana Cabral-Gardner.
“The Offering is part of a comprehensive
financing plan that will enable Sigma to become the next global low
cost & premium lithium producer. Our strengthened balance sheet
will propel the Company from developer to a producer with a
low-cost sustainable capital structure, providing substantial
financial flexibility to manage construction and production
ramp-up”. She added
The Common Shares are subject to a statutory
hold period expiring December 13, 2020. The completion
Offering remains subject to the final approval of the TSX Venture
Exchange. The Common Shares have not been and will not be
registered under the U.S. Securities Act of 1933, as amended, and
may not be offered or sold in the United States absent registration
or an applicable exemption from the registration requirements. This
news release shall not constitute an offer to sell or the
solicitation of an offer to buy nor shall there be any sale of the
Common Shares in any jurisdiction in which such offer, solicitation
or sale would be unlawful.
ABOUT SIGMA LITHIUM
Sigma is a Canadian company producing
environmentally sustainable battery-grade lithium concentrate,
which it has done on a pilot scale since 2018, shipping
high-quality above 6% Li2O coarse lithium concentrate samples to
potential customers in Asia. Based on the technical report titled
“Grota do Cirilo Lithium Project, Araçuaí and Itinga Regions, Minas
Gerais, Brazil, National Instrument 43-101 Technical Report on
Feasibility Study Final Report”, dated October 18, 2019 and with an
effective date of September 16th, 2019, a larger-scale lithium
concentration commercial production plant will contemplate a
capacity of 220,000 tonnes annually of battery-grade low-cost
lithium concentrate and Sigma will be amongst the lowest-cost
producers of lithium concentrate globally.
To secure a leading position supplying the clean
mobility and green energy storage value chain, Sigma has adhered to
the highest standards of environmental practices in line with its
core values and mission since starting activities in 2012. Sigma’s
production process is 100% powered by hydroelectricity and the
Company utilizes state-of-the-art dry-stacking tailings management
and water-recirculation techniques in its beneficiation process.
Its corporate mission is to execute its strategy while embracing
strict Environmental Social and Governance (“ESG”)
principles, managed based on the United Nations’ sustainable
development goals (“UN-SDGs”). Sigma has adhered
to 14 out of the 17 UN-SDGs, including gender equality. Sigma’s
shareholders include some of the largest ESG-focused institutional
investors in the world.
FOR ADDITIONAL INFORMATION PLEASE
CONTACT
Sigma Lithium Resources Corporation
www.sigmalithiumresources.com Company Contact:Anna
HartleyDirector of Investor Relations(London) +44 7866 458
093anna.hartley@sigmaca.com
FORWARD-LOOKING STATEMENTS
This news release includes certain
“forward-looking statements” under applicable Canadian securities
legislation including statements relating to the Use of Proceeds of
the Offering and TSXV approval and the development of the Grota do
Cirilo Project in Brazil. Forward-looking statements
are necessarily based upon a number of estimates and assumptions
that, while considered reasonable, are subject to known and unknown
risks, uncertainties, and other factors which may cause the actual
results and future events to differ materially from those expressed
or implied by such forward-looking statements. All statements that
address future plans, activities, events, or developments that the
Company believes, expects or anticipates will or may occur are
forward-looking information, including statements regarding the
potential development of resources and drilling plans which may or
may not occur. Forward-looking statements and information contained
herein are based on certain factors and assumptions regarding,
among other things, receipt of all necessary approvals to complete
the Offering, the market price of the Company's securities, metal
prices, exchange rates, taxation, the estimation, timing and amount
of future exploration and development, capital and operating costs,
the availability of financing, the receipt of regulatory approvals,
environmental risks, title disputes, litigation risks, failure of
plant, equipment or processes to operate as anticipated, accidents,
labour disputes, claims and limitations on insurance coverage and
other risks of the mining industry, changes in national and local
government regulation of mining operations, and regulations and
other matters including the COVID-19 pandemic. 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 statements. The Company
disclaims any intention or obligation to update or revise any
forward-looking statements, whether as a result 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 our public filings available 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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