VANCOUVER, British Columbia,
Nov. 19, 2021 /CNW/ --
HIGHLIGHTS
COP-26
- Sigma Lithium takes center stage at COP26 for a second time (following COP25 in Madrid)
for:
-
- its pioneering practices in applying clean technologies to
achieve environmental sustainability. Link to Sigma Introduction at
Investment COP26
- demonstrating how developing a circular economy in the region
will drive social impact on its communities. Link to Sigma Lithium
co-CEO Interview at Investment COP26
- Transportation Day at COP26 was
100% aligned with Sigma Lithium's purpose as a pioneer in social
and environmental sustainability. Link to Sigma Interview on
Transportation Day
-
- actively engaged in closed discussions regarding the
development of supply chains that embody the principles of
decarbonization and ecosystem preservation
- Sigma co-CEO spoke at COP-26 at a
panel with Vice-Minister of Economy of Brazil, regarding
-
- the positive social impact resulting from minimizing its
environmental footprint on water, land and GHG emissions
- producing in Brazil with 100%
clean energy "green and sustainable" lithium for the next
generation of electric vehicles. Link to Sigma co-CEO panel with
Vice-Minister of Economy at COP26
- Sigma hosted in Glasgow,
through the Investment Agency it sponsors, two technical
representatives from Vale do Jequitinhonha, appointed by the towns
of Itinga and Aracuai
-
- to develop a technical roadmap for the towns to achieve Net
Zero and foster "green jobs" in the region. Link to Sigma
discussing the Social & Environmental Benefits of the
Sustainable City
- Sigma and its guests from Vale do Jequitinhonha were "Parties"
with full access to the "Blue Zone" and the "Plenary," having the
opportunity to play an active role in the dialogue about achieving
social sustainability for a just energy transition at COP26
THIRD QUARTER RESULTS
- Sigma Lithium is finalizing the mobilization of its workforce
and equipment for construction,
-
- adding a workforce of an additional 180 employees and equipment
on site for earthmoving and construction of the foundations of the
Production Plant
- Sigma on schedule for commercial production in 2022
- concluded Production Plant design and released updated and
final 3D design for Production Plant and mining operations. Link to
video with Final 3D design
- final stage of procurement of capital expenditures at FEL-3
level of precision. Promon and Primero continue to focus on
negotiating and securing long lead items for the construction of
the Production Plant
- agreement under negotiations for the engineering, procurement,
and construction management ("EPCM") of the Production Plant and
associated infrastructure with both Promon and Primero engineering
firms
Sigma Lithium Corporation (NASDAQ:SGML, TSXV:SGML) ("Sigma" or
the "Company") Sigma Lithium, dedicated to powering the next
generation of electric vehicle batteries with environmentally
sustainable and high-purity lithium, is pleased to announce that it
was highlighted at various events during COP (including the
Investment COP) for its pioneering practices in environmental
sustainability and social impact in the communities where it
operates at Vale do Jequitinhonha in Minas Gerais in Brazil, one of the regions with the lowest
index of human development (IDH) in the world. This is the second
COP (the first was COP25 in
Madrid) where the Company has been
in the spotlight for its leadership in environmental and
sustainable practices in the battery materials industry.
Co-CEO Ana Cabral-Gardner and
Sigma's guests from Vale do Jequitinhonha were a "Party" with
access to the Blue Zone of COP-26 in
Glasgow where she spoke regarding
critical topics for the battery materials industry, as it prepares
to scale to power the energy transition:
- On November 8 (during the
prestigious Investment COP, attended by some of the "hosts"
including First Minister of Scotland Nicola
Sturgeon and Leader of Glasgow City Council Councillor Susan
Aitken), Ana spoke on a panel on "Circular Economy and the 21st
Century City: Unlocking the Social & Environmental Benefits of
the Sustainable City" with the Leader of the Glasgow City Council.
Link to full video of Sigma Lithium Panel
- On November 11, Ana participated
in a panel regarding "ESG Investments in Greentech: Generating
Social and Economic Impact and Green Jobs in Brazil " Link to video of Sigma Panel at the
Brazil Pavilion of the "Blue Zone" at COP26.
The Company is also announcing its financial and operating
results for the three and nine months ended September 30, 2021 and providing progress updates
on the construction activities of its Grota do Cirilo project in
Brazil (the "Project"). The most
recent filings can be found on the Company's website at
www.sigmalithium.ca or at www.sedar.com (SEDAR) and at www.sec.gov
(EDGAR).
COP26 HIGHLIGHTS
At the "Circular Economy and the 21st Century City: Unlocking
the Social & Environmental Benefits of the Sustainable City"
panel, Ms. Cabral-Gardner described how the Company introduced
circularity in its operations through its greentech production
plant (the "Production Plant"), powered by 100% clean energy:
applying clean technologies to ensure that 100% of the
tailings are dry-stacked, 100% of the water is re-utilized in the
processing and no hazardous chemicals are applied in separation and
purification processes of the lithium material.
As a result, Sigma plans to direct these "lithium rich and
chemicals free" quartz and feldspar tailings from the greentech
Production Plant to be utilized as an incentive for ancillary
industries, such as ceramic floorings and tiles. By setting-up
industrial operations in the Vale do Jequitinhonha region to reuse
these tailings as raw materials, thereby fostering additional
economic growth, job creation, additional CFEM taxes and overall
social development of Aracuai and Itinga. The Company also
spearheaded the creation of an independent and private Investment
Agency to organize these activities, separately from Sigma's.
"Sigma's high purity lithium materials have significant value
added. Still, the Company could have made a decision to further
increase its profits selling tailings for market price to lower the
Company's cash costs. However, in relative quantitative terms, that
would be a small amount compared to the priceless value of
supporting our community by utilizing these dry stacked tailings to
foster economic development" added Ms. Cabral-Gardner. "We
are creating a legacy by lifting the community together with the
Company."
During the "Green Brazil" session on November 11, Ms. Cabral-Gardner discussed that
the Vale do Jequitinhonha already attracts significant global ESG
investment flows creating "green jobs" via Sigma's presence in the
region. They are a direct result of the multi-billion-dollar
investments made in Europe,
United States and China in building lithium ion battery
factories to enable the electrification of mobility
Ana says "Sigma has developed this high purity and
environmentally sustainable lithium material produced according
with the highest global technological certification standards.
Therefore, our lithium materials will enable the production of the
most advanced electric vehicle batteries globally. We are enabling
the electrification of the car fleets in countries where the
mobility is still heavily dependent on fossil fuels. These
materials are not required by the domestic market in Brazil: as a Brazilian, I am proud to say that
88% of the cars in our country are hybrid ethanol, running on clean
energy."
OPERATIONAL HIGHLIGHTS
The Company continues to advance towards initiating commercial
production in 2022. On November 9,
2021, the Company announced that it mobilized its workforce
and equipment on site for construction of the Production Plant.
This stage comprises the earthworks necessary for installation of
the Production Plant and infrastructure foundations. It is
expected that approximately one million cubic meters of
soil/subsoils will be moved, employing a workforce of approximately
180 people. Completion of this stage is expected within three
months.
The Company expects Front-End Engineering and Design ("FEED") to
be finalized in Q4 2021. The revised CAPEX estimation is ongoing
and final CAPEX with a Project Execution Plan ("PEP") is also
expected to be complete by Q4 2021. Subsequently, Board approval
for the construction plan could be made formalizing a final
investment decision. Immediately thereafter, the Company would
place orders for long lead items and reserve manufacturing slots
with the key vendors whose equipment is part of the construction
critical path. Contracts for earthmoving, civil construction, and
the orders for long lead items will be paid for with funds already
in the Company treasury and earmarked for construction.
Following the successful conclusion of the first phase of FEED,
Promon Engenharia Ltda. ("Promon") and Primero Group Ltd
("Primero") will remain engaged by the Company and continue to
focus on negotiating and securing long lead items for the
construction of the Production Plant. The Company is currently
negotiating an agreement for the engineering, procurement, and
construction management ("EPCM") of the Production Plant and
associated infrastructure with both engineering firms. The Company
is also in negotiations with two finalist mining contractors to
build and operate the Company's first mine at the Project.
ESG HIGHLIGHTS
The Company has ongoing comprehensive environmental and social
programs in process, consistent with its leadership role in ESG in
the lithium sector and its commitment to sustainable mining.
The social and environmental mitigation programs already
initiated in the implementation phase, and continuing through the
construction phase, aim to establish actions to proactively
mitigate, prevent, control and compensate for the environmental
impacts that could be caused by the mining and processing activity
to be carried out by the Company once it enters the production
phase. These programs and actions, which are described below, are
linked to one or more United Nations Sustainable Development
Goals:
- Solid waste management program
- Plan for the reutilization of waste and tailings
- Environmental education program
- Prioritization and professional qualification program for local
suppliers
- Accident prevention and public health program
- Social communications program
- Environmental management and supervision plan
- Planted vegetation monitoring program
- Visual monitoring program for environmental impacts and
mitigation measures
- Specific programs for the conservation and monitoring of
endangered species
- Submission of terms of agreement for project and/or actions
between the entrepreneurs and the municipalities of Itinga and
Araçuaí
The Company has been developing a plan to submit to its Board
outlining strategic steps to achieve net zero targets by 2024. A
key initiative is to introduce biofuels in the mining operations
after the second year of production. It also plans to pursue
generation of carbon credits through "in-setting" carbon credits
(preserving and developing the agroforestry systems within its
regional ecosystem). The Company is currently undergoing an
independent assessment of its net carbon footprint, conducting an
independent ISO 14000 compliant audit of its life cycle analysis
together with an independent expert validation of its carbon
credits generated by its internal preservation, reforestation, and
compensation forestry programs. The Company expects to complete
this work stream in the first quarter of 2022.
CORPORATE SUMMARY UPDATE
On November 5th, 2021, the Company
filed a preliminary short form base shelf prospectus (the "Canadian
Base Shelf") to qualify the distribution, from time-to-time over a
25-month period, of up to US$250
million of the Company's debt and equity securities. The
Canadian Base Shelf was filed in each province and territory of
Canada, other than the Province of
Quebec. The Company also filed a
corresponding shelf registration statement on Form F-10 (the "U.S.
Base Shelf") with the U.S. Securities and Exchange Commission (the
"SEC") under the Multijurisdictional Disclosure System. The
Canadian Base Shelf remains subject to completion or amendment. The
U.S. Base Shelf has been filed with the SEC but has not yet become
effective.
The Company maintains adequate liquidity and rigorous financial
discipline. As of [November 15,
2021], the Company had $32.5
million (US$25.8 million) in
cash and cash equivalents, out of which approximately $29.7 million (US$23.6
million) is held in a construction savings account (not
subject to any restrictions).
ABOUT SIGMA LITHIUM:
The Company is developing, with an environmental sustainability
focused and ESG-centric strategy, the largest hard rock lithium
deposits in the Americas, located in its wholly owned Grota do
Cirilo Project in Brazil with the
goal of participating in the rapidly expanding global supply chain
of electric vehicles.
The Company plans to produce 220,000/t annually of
environmentally sustainable battery grade lithium concentrate
(33,000 t of lithium carbonate equivalent in Phase 1 production),
note based on the 2021 updated Feasibility Study Report. In Phase 2
production, if warranted after ongoing feasibility study,
production would be increased to 440,000 t (66,000 tonnes of LCE)
annually. The first and second phase of production for the Project
will utilize as feedstock spodumene from the Project's own
mines.
Since 2018, the Company has been producing low carbon high
purity lithium concentrate at an on-site demonstration pilot plant
with the objective to ship samples to potential customers for
product certification and testing. This pilot production has been
an important part of the successful commercial strategy of the
Company allowing it to ship samples of its low carbon "green &
sustainable" high purity lithium to leading global potential
customers, for product certification and testing.
The Company is in pre-construction and detailed engineering of
the Production Plant, which is to be an environmentally friendly,
fully automated, dense media separator production plant that
applies proprietary algorithms to digitally control the dense media
("DMS"). The Production Plant will be vertically integrated
into the Company ́s mining operations, exclusively utilizing as
feedstock the high purity spodumene ore with exceptional mineralogy
from the Project. The Production Plant will process the spodumene
ore into a high purity 6% battery-grade lithium concentrate
engineered to the specifications of its customers in the lithium-
ion battery supply chain for electric vehicles.
In order to secure a leading position supplying the clean
mobility and green energy storage value chains, the Company has
adhered consistently to the highest standards of environmental,
social and governance practices, which were established as part of
its core purpose at inception in 2012. Its production process will
be powered by clean energy and the Company will use state-of-the
art water recirculation circuits in its processing combined with
dry stacking tailings management. The DMS process of the Production
Plant does not utilize hazardous chemicals, as a result its
tailings are 100% recyclable into ancillary industries, such as
ceramics.
The Company has been developing a plan to submit to its Board
outlining strategic steps to achieve net zero carbon emission
targets by 2024. A key initiative is to introduce biofuels in the
mining operations after the second year of production. It also
plans to pursue generation of carbon credits through "in-setting"
carbon credits (preserving and developing the agroforestry systems
within its regional ecosystem). The Company is currently undergoing
an independent assessment of its net carbon footprint, conducting
an independent ISO 14000 compliant audit of its life cycle analysis
together with an independent expert validation of its carbon
credits generated by its internal preservation, reforestation, and
compensation forestry programs. The Company expects to complete
this work stream in the first quarter of 2022.
Sigma has significant potential for additional future expansion
and growth, as it owns 27 mineral rights spread over 191
km2 (which include mining concessions, applications for
mining concessions, exploration authorizations and applications for
mineral exploration authorizations). The Grota do Cirilo Project
area includes nine past producing lithium mines.
FOR ADDITIONAL INFORMATION PLEASE CONTACT
SIGMA LITHIUM INVESTORS:
Daniel Abdo
(Sao Paulo) +55 11 2985-0089
daniel.abdo@sigmaca.com or ir@sigmaca.com
Vitor Ornelas
(Sao Paulo) +55 11 2985-0089
vitor.ornelas@sigmaca.com
SIGMA LITHIUM MEDIA CONTACTS:
Anthony
Dovkants
(Brazil) +55 11
99686 806
anthony@prconsultingamericas.com
Colleen
Robar
(United
States) +1 313 207 5960
crobar@robarpr.com
SIGMA LITHIUM SOCIAL MEDIA:
LinkedIn:
|
@SigmaLithium
|
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 the ability of
the Company to complete offerings of its securities under its shelf
offering documents, the ultimate duration, impact and severity of
the COVID-19 pandemic (including its impact on financial markets
and national and multinational economies generally, and its impact
on the growth of the electric vehicle market and other impacts on
the demand for lithium products), the general business and
operational outlook of the Company, and other forward-looking
information. All statements that address future plans, activities,
events, 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 the jurisdictions where the
Company operates; anticipated trends and effects in respect of the
COVID-19 pandemic and post-pandemic; 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
develop and achieve production at its mineral projects. 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 Company may not develop its mineral projects into a
commercial mining operation; 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