HIGHLIGHTS
- Sigma Lithium announces that it has closed trade finance
credit lines totaling USD 90 million,
linked to its outstanding environmental, social and governance
credentials with the following group of leading sustainability
oriented financial institutions:
- Citibank: USD 50
million
- Santander: USD 20
million
- Banco do Brasil: USD 10
million
- XP Inc: USD 10
million
- The Company will celebrate International Women's Day this
weekend by loading 22,000 tonnes of Quintuple Zero Green Lithium to
Glencore AG at the Port of Vitoria.
- The shipment demonstrates consistent performance of its
Greentech industrial plant to produce at a monthly cadence
equivalent to approximately 270,000 tonnes per year (reaching
design capacity).
- Glencore has increased its prepayment to 85% of the
shipment's value at premium provisional price of 7.5% of the quoted
LME/Fastmarkets lithium hydroxide price.
- At Sigma Lithium, "Every Day is Women's Day". Our team is
celebrating by excelling in our jobs: consistently delivering to
our clients the most sustainable lithium materials in the world,
becoming one of the building blocks of a green and socially
inclusive supply chain.
- Interacting with women leaders is part of our team's daily
routines, as a result of the unparalleled diversity at the
Company.
- Over 40% of decision-making roles are occupied by women
managers.
- We are the only company in our segment of battery materials
with a female co-chairperson.
SÃO PAULO, March 8,
2024 /CNW/ -- Sigma Lithium Corporation
("Sigma Lithium" or the "Company") (NASDAQ: SGML,
BVMF: S2GM34, TSXV: SGML), a leading global lithium
producer dedicated to powering the next generation of electric
vehicles with carbon neutral, socially and environmentally
sustainable lithium concentrate, announces it will celebrate
International Women's Day this weekend by loading 22,000 tonnes of
Quintuple Zero Green Lithium to Glencore AG ("Glencore"), at
the Port of Vitoria. This seventh overall shipment demonstrates
consistent performance of its Greentech industrial plant to produce
at a monthly cadence equivalent to approximately 270,000 tonnes per
year.
Glencore has increased the amount of its prepayment to 85% of
the shipment's value and improved the terms to affect payment upon
product delivery to the warehouse. This represents a shift from
prior shipments, whereby the Company secured 50% of the value upon
loading.
The prepayment reflects premium provisional pricing at 7.5% of
the lithium hydroxide price quoted at LME (average China, Japan,
South Korea) for the Company's
unique Quintuple Zero Green Lithium concentrate ("Quintuple Zero
Green Lithium"). The shipment is part of a commercial distribution
and marketing agreement with Glencore that aims to build a low
carbon, environmentally and socially sustainable global lithium
supply chain for electric vehicles.
Additionally, Sigma Lithium announces that it has closed a total
of USD 90 million in trade finance
credit lines, with the following group of leading sustainability
oriented financial institutions at interest rates averaging 11%
annually:
- Citibank: USD 50 million
- Santander: USD 20 million
- Banco do Brasil: USD 10
million
- XP Inc: USD 10 million
The most recent trade finance credit line with Citibank for
USD 50mn has a 180-day duration and a
9.3% total interest rate. The Company was able to achieve favorable
terms given its superior ESG credentials, which Citibank is now
expressly considering in its Supplier Finance ESG lines. The
increased balance of trade financing remains available for use, as
the Company currently funds its working capital through its
prepayment agreement with Glencore.
Company CEO and Co-Chairperson, Ana
Cabral-Gardner, notes, "We reached an important financing
milestone closing a total of USD 90mm of ESG trade lines by
achieving production cadence at the Greentech industrial
plant. Establishing a consistent shipping schedule,
demonstrating our product quality, and low-cost resilience at the
trough of this lithium cycle has opened these additional credit
opportunities for Sigma Lithium. The trade lines with longer
duration significantly increase our financing flexibility, as our
board prepares to make a final investment decision on the
construction of a second Greentech industrial production line of
Quintuple Zero Green Lithium."
Sigma Lithium has managed to industrialize a unique Quintuple
Zero Green Lithium, recognized at COP28 as the most sustainable lithium in the
world:
- Zero Net Carbon: First large-scale producer in the
lithium industry to achieve carbon neutrality.
- Zero Coal Power at Greentech Plant: 100% renewable
power.
- Zero Tailings Dams: 100% dry stacked tailings.
- Zero Utilization of Potable Water: Sewage treatment for
solid fecal residues for Greentech plant inbound water.
- Zero Use of Hazardous Chemicals in manufacturing process
of lithium concentrate.
ABOUT SIGMA LITHIUM
Sigma Lithium (NASDAQ: SGML, BVMF:
S2GM34, TSXV: SGML) is a leading global lithium producer dedicated
to powering the next generation of electric vehicle batteries with
carbon neutral, socially and environmentally sustainable lithium
concentrate.
Sigma Lithium operates at the forefront of environmental and
social sustainability in the EV battery materials supply chain and
is currently producing Quintuple Zero Green Lithium concentrate
from its Grota do Cirilo Project in Brazil. Phase 1 of the project entered
commercial production in 2Q23 and has an annual capacity of 270,000
tonnes of concentrate (36,700 LCE annually). The Company is
currently evaluating a decision to expand production via a Phase 2
concentrate line and associated mine which would add another
250,000 tonnes of annual Quintuple Zero Green Lithium capacity. The
project produces lithium concentrate at 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