PHASE 1 CONSTRUCTION UPDATE
- Sigma Lithium remains on track to deliver its battery grade
high purity sustainable lithium and initiate cash flow generation
in the near-term (construction progress footage can be viewed
here).
-
- Approximately 25% of total construction completed;
- Phase 1 construction remains on schedule and on budget for
commissioning to commence by December
2022;
- The Company is planning for approximately 600 professionals
working on site, when the pace accelerates during peak civil
construction and electromechanical assembly in October and
November 2022; and
- Reached significant completion level of 65% for the final 2D
drawings of the construction.
- Electromechanical assembly of the equipment for the
Production Plant has commenced at respective suppliers
manufacturing sites.
-
- Equipment is expected to begin arriving on site for
installation towards the end of July.
- The following key workstreams are currently
underway:
-
- Civil construction of foundations for the installation of
the equipment of the Production Plant (crushing plant area,
scalping screening and Greentech Plant);
- Civil construction of the run of mine ("ROM") pad and
ROM wall;
- Construction of the Company's own high voltage substation on
site; and
- Fabrication of platework and steel structure on site.
- To date, the following construction workstreams have been
100% completed:
-
- Earthworks necessary for construction of foundations for the
Production Plant;
- Production Plant site's protective drainage (channels and
pipes);
- Sump area construction; and
- Detour road improvements (bypass of the municipal road
around the Project).
LITHIUM INDUSTRY REGULATORY UPDATE IN BRAZIL
- On July 5, 2022, the Brazilian
Government issued a presidential decree (the "New Lithium
Decree") allowing unrestricted trade of any products containing
lithium, updating the regulatory framework of the sector:
-
- Eliminates the requirement to solicit quotas and export
authorizations by the nuclear authority, positively modernizing and
deregulating the entire lithium sector for the energy
transition
- Significantly increases the competitiveness of Brazil for global investments; and
- Creates the regulatory conditions for Brazil to extend its leadership in
environmentally and socially sustainable pre-chemical lithium
concentrate further downstream into refined chemicals and cathode
precursors / cathode paste, also affected by the export quotas and
authorization requests to the nuclear
authority.
ENVIRONMENTAL LICENSING UPDATE
- On June 27, 2022, the Company
obtained its requested extension of its current environmental
licenses to allow for the simultaneous mining of the north pit and
the south pit of the Phase 1 deposit.
-
- Enables the Company to plan a significant expansion of the
production capacity in Phase 2 by increasing the area where the dry
stacking of the tailings of the Production Plant is allowed;
and
- The expansion also makes the municipality of Araçuaí (where
the south pit is located) eligible to receive royalties from Sigma
Lithium's production, sharing them with Itinga where the north pit
and the Production plant are located.
- The Company's ESG-centric strategy guided the decision to
conduct the simultaneous mining of the north pit and the south pit
of the Phase 1 deposit.
CORPORATE UPDATES
- Sigma Lithium received overwhelming support at its annual
general shareholder meeting ("AGM") held on June 30, 2022.
-
- Approximately 75% of the outstanding shares were represented
at the AGM.
- All Directors of the Company were re-elected by overwhelming
votes.
- Over 98% of the minority shareholder shares represented at
AGM were voted FOR the Amendment of the Equity Incentive
Plan.
-
- Amendment enables the Company to attract and retain the
operating team members who will transition Sigma Lithium into a
major global producer.
- Sigma Lithium featured in "View from C-Suite" interview by
the TMX Group
-
- Film produced by the TMX Group can be viewed
here.
VANCOUVER, BC, July 12,
2022 /CNW/ -- SIGMA Lithium Corporation
("Sigma Lithium" or the "Company") (NASDAQ: SGML,
TSXV: SGML), dedicated to powering the next generation of
electric vehicles with environmentally sustainable and high-purity
lithium, is pleased to provide an update on construction at its
wholly owned Grota do Cirillo project (the "Project" or
"Grota do Cirilo"), as well as provide a regulatory update
and report the results of the voting at its AGM held on
June 30, 2022.
"We are honored by our shareholders' continued support and
the overwhelming approval of all voted resolutions at our AGM held
on June 30, 2022", says
Ana Cabral-Gardner, Co-CEO and
Co-Chairperson of Sigma Lithium. "We remain focused on
establishing Sigma Lithium as one of the world's largest lithium
producers, significantly progressing towards positive cash flow
when delivering Battery Grade Sustainable Lithium in the near term.
Our operating team has been consistently delivering all the
execution milestones of the Project's construction and licensing,
positioning the Company to potentially participate as a producer in
what may be one of the most favorable lithium markets of all
time."
Calvyn Gardner, Co-CEO and
Co-Chairperson of Sigma Lithium added, "We are pleased to
provide an update on our significant construction progress at Grota
do Cirilo, as we continue to rapidly advance Phase 1 Plant
construction on schedule and on budget, with approximately 25% of
total construction completed. The continuous advance of final
construction drawings towards 65% completion also allows us to plan
for the total amount of bulk construction material to be utilized,
potentially extending our management of our supply chains."
PHASE 1 CONSTRUCTION UPDATE
Sigma Lithium is pleased to report significant advancement of
construction at its Phase 1 Production Plant and infrastructure
areas, establishing operational readiness and supporting ongoing
operations. The Company continues to rapidly progress construction
activities and has issued more than 30 purchase orders for critical
equipment as of July 2022.
To date, the following construction workstreams have been 100%
completed:
- Earthworks necessary for construction of foundations for the
Production Plant;
- Production Plant site's protective drainage (channels and
pipes);
- Sump area construction; and
- Detour road improvements (bypass of the municipal road around
the Project).
Electromechanical assembly (including mainframes for the primary
crusher, DMS plant and other infrastructure) has commenced offsite,
and the Company expects equipment to begin arriving towards the end
of July.
The construction team is currently focused on completing the
following workstreams:
- construction of equipment foundations for the crushing,
scalping screening and DMS areas (rebar and pouring concrete);
- construction of the ROM pad and ROM wall;
- construction of the Project's HV substation;
- electromechanical assembly; and
- platework and steel structure fabrication.
Additionally, the Company has progressed detailed engineering
alongside construction activities, with approximately 65% of
overall detailed engineering completed as of July 2022. Refer to Table 1 below for a breakdown
of detailed engineering progress.
Table 1: Detailed Engineering Progress Summary
Discipline
|
Progress
|
Steel
Platework
|
94 %
|
Process
|
89 %
|
Mechanical
|
88 %
|
Project
Management
|
88 %
|
General
Engineering
|
85 %
|
Structural
|
80 %
|
Concrete
|
80 %
|
Electrical &
Instruments
|
60 %
|
Piping
|
37 %
|
Controls
|
12 %
|
Overall Detailed
Engineering
|
65 %
|
As a result of the advancement in completion to 65% of the
construction drawings to date, Sigma Lithium estimates that the
following amounts of materials will be utilized in the
construction:
- Concrete: 5,950 m³
- Mechanical and Electrical Equipment: 2,130 tonnes
- Steel Structure: 1,050 tonnes
- Piping: 113 tonnes
- Piping Polyethylene: 12,400 linear meters
- Instruments: 947 units
- Instruments and Electrical Cables: 105,000 linear meters
ENVIRONMENTAL LICENSING UPDATE
The Company obtained the requested extension of its current
environmental licenses for both construction ("LP") and
installation and commissioning ("LI") from the environmental
authority of the State of Minas Gerais (the "LP/LI Environmental
License"), the Council of Environmental Policy ("Conselho
Estadual de Política Ambiental" or "COPAM") in
Brazil.
- The extension allows for the simultaneous mining of the north
pit and the south pit of the Phase 1 deposit; and
- The extension also allows for the Company to increase the area
utilized for the dry stacking of the tailings of the Greentech
Production Plant and thus plan a significant expansion of the
production capacity in a Phase 2.
The south pit of Phase 1 mine was designed to:
- have the lowest possible environmental impact by preserving the
Piaui creek; and
- extend the socioeconomic return of the Company to Aracuai,
where the south pit of the deposit was located.
The decision to conduct the simultaneous mining of the north pit
and the south pit of Phase 1 by the Company was guided by the
Company's ESG-centric strategy, enabling the municipality of
Araçuaí (where the south pit is located) to also be entitled to
receive part of the CFEM government royalty.
- CFEM royalties were previously restricted to the municipality
of Itinga, where the north pit is located.
- As a result, this extension of the environmental license
enables the Company to allocate significant royalty payments to
BOTH municipalities, meeting SDG # 16 (Peace, Justice and Strong
Institutions).
An operating license ("LO") is required for the
commercial operations, when external sales of the products are
conducted.
- The LO in Brazil is only
granted once the construction and installation of the Project is
completed, as it follows a final inspection by SUPPRI of both First
Mine and Production Plant.
- Therefore, as the Project is in construction the Company does
not yet have an LO.
On June 27, 2022, COPAM issued a
dual LP and LI Certificate No. 4497, for a period of 6 years
expiring on June 24, 2028.
REGULATORY UPDATE
On July 5, 2022, the Brazilian
Government issued presidential decree number 11.120 (the "New
Lithium Decree") fully revoking both presidential decree number
2.413 of December 4, 1997, as well as
presidential decree number 10.577 of December 14, 2020.
The New Lithium Decree allows for unrestricted trade of any
products containing lithium:
- Eliminates the requirement for quotas and authorizations by the
nuclear authority for foreign trade activities, positively
deregulating the lithium sector.
- Significantly increases the competitiveness of Brazil for global investments in the lithium
supply chain.
- Includes chemicals and products containing lithium chemicals
and refined lithium chemicals, such as cathode precursors and
cathode paste.
Ana Cabral-Gardner, Sigma Lithium
co-CEO says "The New Lithium Decree is a significant positive
step for Brazil to modernize and
further integrate the country lithium sector into global lithium
supply chains. It creates the regulatory conditions for
Brazil's to extend its leadership
in environmentally and socially sustainable pre-chemical lithium
concentrate further downstream into refined chemicals and cathode
precursors. Brazil's large
reserves of natural gas offshore and abundant and inexpensive
renewable energy provide the perfect "Scope 2" conditions for low
carbon "Scope 1" downstream industrial facilities in the lithium
supply chain."
AGM VOTING RESULTS
Sigma Lithium received overwhelming support from its
shareholders at its AGM held on June 30,
2022, with all resolutions passed by a vote of the Company's
shareholders.
- Shareholders of approximately 75% of the outstanding shares
were represented at the AGM.
Over 98% of the minority shareholder shares represented at the
AGM were voted for the amendment of the equity incentive plan.
- Enabling the Company to attract and retain the operating team
members who will transition Sigma Lithium into a major global
producer.
Refer to Table 2 below for a summary of the voting results at
the AGM.
Table 2: Summary of AGM Voting Results
Resolution
|
Votes
For
|
% of
Eligible
Votes
Cast
|
Votes
Withheld
|
% of Eligible
Votes Withheld
|
Votes
Against
|
% of Eligible
Votes Against
|
1. a
|
Re-election of Calvyn
Gardner
as Director of the
Company
|
68,040,366
|
99.90 %
|
69,880
|
0.10 %
|
n/a
|
n/a
|
1. b
|
Re-election of Ana
Cristina Cabral
as Director of the
Company
|
66,826,986
|
98.12 %
|
1,283,260
|
1.88 %
|
n/a
|
n/a
|
1. c
|
Re-election of
Frederico Marques
as Director of the
Company
|
67,014,142
|
98.39 %
|
1,096,104
|
1.61 %
|
n/a
|
n/a
|
1. d
|
Re-election of Gary
Litwack
as Director of the
Company
|
67,016,509
|
98.39 %
|
1,093,737
|
1.61 %
|
n/a
|
n/a
|
1. e
|
Re-election of Marcelo
Paiva
as Director of the
Company
|
61,179,961
|
89.82 %
|
6,930,285
|
10.18 %
|
n/a
|
n/a
|
2
|
Re-appointment of KPMG
as
Auditor of the Company
|
75,149,662
|
99.87 %
|
97,010
|
0.13 %
|
n/a
|
n/a
|
3
|
Equity Incentive Plan
Amendment
|
20,426,872
|
98.64 %
|
n/a
|
n/a
|
282,656
|
1.36 %
|
QUALIFIED PERSONS
Mr. Wes Roberts, P.Eng., a member
of the technical committee of the Company, is the "qualified
person" under NI 43-101 who reviewed and approved the technical
information included in this news release.
ABOUT SIGMA LITHIUM CORPORATION
Sigma Lithium (NASDAQ: SGML, TSXV: SGML) is a Canadian company
dedicated to powering the next generation of electric vehicle
batteries with environmentally sustainable and high-purity
lithium.
Sigma Lithium is currently in construction at its wholly owned
Grota do Cirilo Project in Brazil,
the largest lithium hard rock project in the Americas and one of
the largest and highest purity lithium projects in the world.
The lithium will be processed in a state-of-the-art, green-tech
processing plant that uses 100% renewable energy, 100% recycled
water and 100% dry-stack tailings. Since inception, Sigma has
devoted itself to strong ESG practices, from its ongoing support of
local communities to its goal of achieving net zero by 2024. For
more information about Sigma Lithium, visit
https://www.sigmalithiumresources.com/
Sigma Lithium
Sigma Lithium
@sigmalithium
@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 commissioning of the Phase 1 Plant,
production, the general business and operational outlook of the
Company, 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 the jurisdictions where the Company
operates (including that the Company will obtain all licenses and
approvals required); anticipated trends and effects in respect of
the COVID-19 pandemic and post-pandemic; the military conflict in
Ukraine and related sanctions;
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