HIGHLIGHTS
- Sigma Lithium vehemently denies inaccurate recent media reports
that incorrectly denominated as an "injunction" certain conditions
established upon the approval by the Brazilian Courts of the
transfer of two Exploration Sub-Plots by RIX to Sigma Brazil.
- Sigma Lithium states as categorically incorrect
recent media reports speculating that the status or conditions
attached to the transfer are impediments to the Company's future
operations and its ability to conduct its Phase 2 & 3
expansion.
- The Brazilian Courts ruling just reinforced the Brazilian
Mining Code, whereby both Sigma Brazil and RIX have access
ensured by rule of law to the Exploration Sub-Plots through a
standard "waste sharing agreement".
- The two companies celebrated an irrevocably binding
waste sharing agreement on August 9,
2023.
- The Brazilian Courts authorized the transfer of the Exploration
Sub-Plots by RIX without cost to Sigma Brazil.
- Furthermore, the Brazilian Courts ruled that any undue loss
to RIX can be resolved through financial compensation amongst
RIX shareholders.
- This compensation is an internal matter related to RIX and does
not impact Sigma Brazil nor Sigma Lithium.
SAO
PAULO, Sept. 29, 2023 /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 chemical-grade lithium concentrate,
categorically states that its Phase 2 & 3 expansion plans are
proceeding as planned.
Sigma Lithium vehemently denies inaccurate recent media reports
that incorrectly denominated as an "injunction"
certain conditions established upon the approval by the Brazilian
Courts of the transfer by RIX Mineração S.A. ("RIX") to
Sigma Brazil of two sub-divisions of an exploration permit
("Exploration Sub-Plots").
The Brazilian Courts authorized the
transfer of the Exploration Sub-Plots by RIX without
cost to Sigma Brazil or Sigma Lithium.
- Furthermore, the Brazilian Courts ruled that any undue loss to
RIX can be resolved through financial compensation amongst RIX
shareholders.
- This compensation is an internal matter related to RIX and does
not impact Sigma Brazil or Sigma Lithium.
Sigma Lithium states as categorically incorrect
recent media reports speculating that the status or conditions
attached to the transfer are impediments to the Company's future
operations and its ability to conduct its Phase 2 & 3
expansion.
Sigma Lithium believes the decision by the courts approving the
transfer of the Exploration Sub-Plots by RIX with certain
conditions was fair. The conditions are in line with the provisions
within the Brazilian Mining Law. RIX did not appeal the Brazilian
Courts decision.
Both Sigma Brazil and RIX access to the small areas represented
by the two Exploration Sub-Plots is regulated by the Brazilian
Mining Law through a standard "waste sharing agreement".
- The two companies celebrated an irrevocably binding waste
sharing agreement on August 9,
2023 ensuring access of both companies to the areas.
- Sigma Brazil is authorized to
remove waste from the Exploration Sub-Plots in question, when
opening its Phase 2 & 3 pits.
- In the event of Sigma Brazil encounters any mineral in the
Exploration Sub-Plots, it shall place in a nearby location
determined by RIX for its future use.
Paula Lacava, Sigma Lithium Chief
Legal Counsel stated, "Approving the transfer with conditions
was a wise decision by the Brazilian Courts, ruling in line with
the Brazilian Mining Law: Not only validated the transfer, but also
solved the matter of whether the Exploration Sub-Plots might
contain economically mineable ore."
The conditions established by the Courts allow Sigma Brazil to
remove waste and ground within the areas of the Exploration
Sub-Plots, as planned, in line with the standard "waste sharing
agreement" signed. The conditions just reinforced the regulations
in the Brazilian Mining Code:
(i) Sigma Brazil is just prevented from
sub-leasing the "Exploration Sub-Plots" to a third party
and/or;
(ii) Profiting from the sale of mineral ore located in the
"Exploration Sub-Plots".
Therefore, these conditions are not material nor impact Sigma
Lithium´s business or Sigma Brazil´s operations.
The Exploration Sub-Plots do not contain any mineral reserves.
The surface farms over the Exploration Sub-Plots are held by
private Brazilian land corporations, Miazga and Arqueana, both also
related parties, 51% controlled by Ana
Cabral.
Hence the decision by the Brazilian Courts was not appealed by
RIX or by Calvyn Gardner, a minority
shareholder of RIX.
Sigma Lithium continues its strategic review of proposals
received from potential partners in various industries
globally.
Sigma Lithium's Phase 2 & 3 mines are clear separate ore
bodies from RIX's deposits, as determined by the vertical section
at the border limit. Therefore, the mining activities of both
Phase 2 & 3 are ensured and regulated by rule of law (Mining
Code and Federal Laws regulating the Mining Code), including access
guarantees.
RIX is a related party to Sigma Lithium. It is a Brazilian
privately held holding corporation founded by Ana Cabral in March
2009 and funded with her principal capital since inception.
She controls 51% of RIX and granted Calvyn
Gardner 49% as an "earned free carry" for his work as
an executive in the Company.
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 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
X (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