Sigma Lithium Starts Construction of Production Plant Foundation and Infrastructure and Orders Long Lead Items, ON Schedule FOR Production IN 2022
SIGMA LITHIUM STARTS CONSTRUCTION OF PRODUCTION
PLANT FOUNDATION AND INFRASTRUCTURE AND ORDERS
LONG LEAD ITEMS, ON SCHEDULE FOR PRODUCTION IN 2022
HIGHLIGHTS
• Sigma starts construction activities on site for foundation, earth civil works and
infrastructure installation of Production Plant, with equipment and 180 workers.
• Company is on track to begin production in the fourth quarter of 2022. Please
also refer to the Company’s website at www.sigmalithium.ca for updated videos
of the current activities at the site.
• The Company has the funds to meet the equity funding requirements under its
proposed construction debt facility.
• Sigma ordered an increased number of 38 key long lead items, placing deposits to
secure them and maintain the current timeline for Production Plant
commissioning.
VANCOUVER, British Columbia. December 6, 2021- Sigma Lithium Corporation (NASDAQ:SGML,
TSXV:SGML) (“Sigma” or the “ Company”), dedicated to powering the next generation of electric
vehicle batteries with environmentally sustainable and high -purity lithium, is pleased to announce
that it has commenced construction on site to build the foundation and infrastructure installation of
its greentech dense media separation production plant (the “Production Plant”), at its wholly owned
Grota do Cirilo Project (the “Project”).
The Company is also announcing that it has secured 38 critical long lead items required for the
Project and begun ordering them from respective suppliers, placing deposits to secure manufacturing
timetables. Prices and FEL-3 quotes for these long lead items have been in line with the FEL-2 capex
estimates in the feasibility study included in the Company’s most recently filed technical report.
Completion of this stage of the construction civil works is expected within three months, when the
Brazilian sub-construction firm of Promon Engenharia Ltda. (“Promon”) is expected to complete
earthworks and the concrete plant drainage channels. This stage follows the successful conclusion
last month of mobilization to site of approximately 180 workers and construction equipment.
In order to fund construction, the Company has the funds to meet the equity funding requirem ents
under its proposed construction bank debt facility. The Company signed term sheets for debt and
project finance with BDMG, the development bank of the Minas Gerais State and a commercial bank.
It The closing of th ese debt transactions is pending the c ompletion of customary due diligence and
definitive documentation.
Calvyn Gardner, Sigma co-CEO and lead engineer on the ground at construction site, commented:
“This is a tremendous milestone for Sigma Lithium, now initiating the construction of the Production
Plant, following the successful completion of mobilization and the front-end engineering and design.
As a result, we have been able to quote FEL-3 Capex in line with our FEL-2 estimates in our feasibility
study. Our team has worked tirelessly this year on several fronts on detailed engineering and pre -
construction with the environmental focus that has been a hallmark of Sigma.”
ADDITIONAL STAGES OF CONSTRUCTION
Phase 1 of the Production Plant has been designed to produce up to 220,000 tonnes per annum of
high purity 6% battery grade lithium concentrate (“Battery Grade Green and Sustainable Lithium”),
equivalent to approximately 33,000 tonnes per year of lithium carbonate equivalent (“LCE”).
Ana Cabral-Gardner, co-CEO and lead commercial officer, explained: “By advancing the Phase 1
construction schedule as planned, Sigma Lithium is in a position to potentially deliver large quantities
of battery-grade green and sustainable lithium at a critical supply juncture for the lithium market and
the battery industry.”
Ana continued: “Customer demand has been beyond the quantities that are planned to be produced
by Phase 1, as indicated by the binding term -sheet with LG Energy Solution as well as by our
agreement with Mitsui.”
She added: “Our recently approved final base shelf prospectus and related shelf registration will
provide Sigma with financial flexibility to more efficiently do debt or equity offerings to fund our
accelerated growth plans to meet the significant demand Sigma has been experiencing for its
Battery Grade Green and Sustainable Lit hium from global battery producers focused on
sustainability in their supply chains. ”
The Company completed a preliminary economic assessment and is currently conducting a
preliminary feasibility study for a prospective second production phase contemplating the addition
of a processing line with similar capacity to Phase 1 with a further 220,000 tonnes per year of Battery
Grade Green and Sustainable Lithium. If warranted and validated by the ongoing feasibility study,
the Company could potentially doubl e the Project total capacity of Battery Grade Green and
Sustainable Lithium to 440,000 tonnes per year (66,000 tonnes per year of LCE). The preliminary
feasibility study is expected to be completed in the first quarter of 2022.
Calvyn Gardner said: “By achieving the milestone of starting construction, we proved the capabilities
of our highly experienced project and technical team s to significantly advance Sigma Lithium’s
operations from a demonstration plant towards a full-scale commercial plant.”
Calvyn added: “With the the Phase 2 pre-feasibility study being conducted concurrently with the
construction of Phase 1, Sigma is evaluating our ability to potentially double production in the near
term, if the stud y warrant s. The high -quality of our lithium products offer great commercial
advantages due to their high-purity, low levels of iron and alkalines and coarse particle size.”
LONG LEAD ITEMS AND ENGINEERING SERVICES CONTRACTS
The Company ´s Board of Directors has approved a total of USD $9.4 million of construction
disbursements, to be entirely funded from the Company´s construction savings account that had a
December 1, 2021 balance of USD $23 million. The approvals include:
o USD $4.7 million to Promon and its Brazilian subcontractor to execute civil works of earth
moving for foundations, land adaptation and protective drainage of the construction site of
the Production Plant.
o USD $1.5 million to Promon and Primero Group Ltd. (“Primero”) for the continuity of certain
construction-related engineering services throughout the first quarter of 2022.
o USD $3.5 million of non-refundable deposits to order 38 long lead items, securing their
respective manufacturing slots.
o These long lead items include , amongst others: HV substation (including power
transformers, plant switchrooms , transmission line; crushers
(primary/secondary/tertiary); conveyors; reflux classifiers ; dry stacking tailings
environmental equipment (including tailings thickener, tailings belt filter, stackers,
water treatment stations), cyclones, wet magnetic separators, control system
hardware.
o The procurement process for the long lead items has been managed by the Company´s
project management team, together with Promon and Primero. Prices were received
through request for proposals and have allowances to include freight, import duty and
spare parts.
The Company is currently negotiating an agreement for the engineering, procurement, and
construction management of the Production Plant and associated infrastructure with Promon and
Primero. The Company is also in n egotiations with two finalist mining contractors to build and
operate the Company’s first mine at the Project.
ABOUT SIGMA LITHIUM
Headquartered in Canada, Sigma Lithium (NASDAQ: SGML, TSXV: SGML) is dedicated to powering
the next generation of electric vehicle batteries with environmentally sustainable and high -purity
lithium, developing with an ESG-centric strategy, a leading integrated Lithium company in the
Americas. Sigma is developing the largest hard rock lithium spodumene deposits in the Americas,
located in its wholly owned Grota do Cirilo Project in Brazil. The Company has processed these
spodumene into Batte ry Grade Green and Sustainable Lithium for three years having achieved
certification status with the largest battery makers in the world. Sigma has unique and differentiated
environmental and social sustainability practices: The Project will be powered by clean & renewable
energy. The Processing Plant will use state-of-the art water recirculation circuits combined with dry
stacking tailings management, to reuse 100% of the water and not to create tailing dams. Sigma has
sponsored a private agency to promote additional investments in the region and has been fostering
initiatives to both create sustainable economic development while lifting the community from
poverty.
With a goal of net zero carbon emissions by 2024, the Company has adher ed consistently to the
highest standards of environmental, social and governance practices, established as part of its core
purpose at inception in 2012. For more information about Sigma Lithium,
visit www.sigmalithiumresources.com.
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.
FOR ADDITIONAL INFORMATION PLEASE CONTACT
SIGMA LITHIUM INVESTORS:
Daniel Abdo
(Sao Paulo) +55 11 2985-0089
[email protected] or [email protected]
Vitor Ornelas
(Sao Paulo) +55 11 2985-0089
SIGMA LITHIUM MEDIA CONTACTS:
Anthony Dovkants
(Brazil) +55 11 99686 806
Colleen Robar
(United States) +1 313 207 5960
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 ability of the Company to complete construction and commence commercial production
within the targeted timing and projected budget, 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 legis lative, 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 al l, 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 o r 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 p ublic 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.