- Sigma Lithium is delivering on its pioneering "Zero
Tailings" environmental sustainability strategy, eliminating the
environmental footprint of tailings with a positive ecosystem
impact.
- The Company received the first payment on its first shipment
under a three-year environmental offtake agreement to sell 100% of
its Green Tailings (the "Green Tailings Environmental Offtake")
together with one spot shipment of 15,000 tonnes of Green
Lithium.
-
- Green Tailings are high-purity, zero chemicals,
approximately 1.3% lithium oxide ("Li2O"), ultra-fine tailings
generated by the Company's Greentech Lithium Processing Plant
("Greentech Plant") as a by-product.
- Green Lithium is high purity 5.5% battery grade sustainable
lithium produced by the Greentech Plant.
- The Green Tailings Environmental Offtake and the spot sale
agreement were concurrently signed on May 3,
2023, with Yahua, one of the largest lithium chemical
refiners for electric vehicles in the world, with a leading
industry position and customer relationships that include LG Chem,
LG Energy Solution and leading original equipment manufacturers
("OEMs").
-
- 100% of Green Tailings are expected to be upcycled into
battery grade lithium concentrate by Yahua, lowering Yahua's and
its customers' scope 3 carbon emissions by using upcycled
feedstock.
- The Company received 50% prepayment in advance of these
shipments and achieved premium pricing:
-
- Green Lithium: 9% of lithium hydroxide index
- Green Tailings: 9% of lithium hydroxide index, with
deductions for grade, processing and tolling costs
- This shipment of 30,000 tonnes is in the process of being
transported and stored at port to be shipped in early June, and is
comprised of 15,000 tonnes of Green Tailings and 15,000 tonnes of
Green Lithium.
VANCOUVER, BC, May 26, 2023
/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
announce that it is delivering on its pioneering "Zero Tailings"
environmental sustainability strategy, eliminating the
environmental footprint of tailings with a positive ecosystem
impact.
The Company received the first payment on its first shipment
under the Green Tailings Environmental Offtake to sell 100% of its
Green Tailings for up to three years to Yahua International
Investment and Development Co., Ltd. ("Yahua"). Sigma Lithium's
Zero Tailings strategy ensures that lithium material is neither
wasted nor consigned to environmentally hazardous tailings dams,
making the Company the world's first lithium producer to achieve
Zero Tailings from the onset.
The Green Tailings Environmental Offtake agreement signed on
May 3, 2023, comprises the sale of up
to 300,000 tonnes of Green Tailings per year for up to three years
to be upcycled into battery grade lithium concentrate for use in
electric vehicle battery production. In addition, the Company
concurrently entered into a spot sale agreement with Yahua for the
sale of 15,000 tonnes of Green Lithium.
Yahua is one of the largest lithium chemical refiners for
electric vehicles in the world, with a leading industry position
and customer relationships that include LG Chem, LG Energy Solution
and leading OEMs.
"Achieving Zero Tailings marks a major milestone for Sigma
Lithium and for the battery materials industry, demonstrating that
lithium battery materials can be produced in harmony with the
environment and without hazardous tailings dams," said Ana Cabral-Gardner, Sigma Lithium CEO and
Co-Chairperson. "Our Zero Tailings strategy enables Sigma Lithium
to lead the way in the inception of a sustainable global supply
chain for the next generation of electric vehicles built in line
with the ethos of the consumer to meet the accelerated global
demand for lithium."
"Reaching Zero Tailings is a result of our consistent
investments in clean technologies over the last five years to
deliver on our commitment to achieve a green process flowsheet for
lithium materials. The successful operation of our Greentech Plant,
which uses 100% renewable energy, 100% recycled water and 100%
dry-stacked tailings, is a testament to this commitment and a model
of environmental sustainability."
"As a producer of Green Lithium, Sigma Lithium is helping to
elevate Brazil's role in the
energy transition while creating a positive impact on the
communities in Vale do Jequitinhonha, also known as Lithium Valley,
through our continued collaboration with federal and state
government leaders."
Sigma Lithium began trucking Green Lithium and Green Tailings in
April 2023, stockpiling the materials
in its two warehouses at Vitoria Port in preparation for its first
shipment. Green Lithium and Green Tailings shipment volume
continues to increase daily and is on track to achieve the expected
ramp-up volumes for 2023.
ABOUT SIGMA LITHIUM
Sigma Lithium (NASDAQ: SGML, TSXV: SGML) is a company dedicated
to powering the next generation of electric vehicle batteries with
environmentally sustainable and high-purity lithium.
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 Green Lithium from its
Grota do Cirilo Project in Brazil.
Phase 1 of the project is expected to produce 270,000 tonnes of
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 Green Lithium in a 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, Araçuai and Itinga Regions, Minas Gerais, Brazil, Updated Technical Report" dated
October 31st, 2022, 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., MBAC, 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 including production estimates and projected
cash flows; timing for the commissioning of the Greentech Plant and
commencement of commercial production, completion of the report
relating to the Greentech Plant expansion expectations
as to the commencement of cash flow and whether such cash flows can
support the Greentech Plant expansion, operational status, the
Company meeting its social and climate initiative and objectives,
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 (including but not limited to the impact of the
continuance or escalation of the military conflict between
Russia and Ukraine, and economic sanctions in relation
thereto); the stable and supportive legislative, regulatory and
community environment in Brazil;
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 including
that the Company will not experience any materials or equipment
shortages, any labour or service provider outages or delays or any
technical issues in the course of final commissioning or in respect
of the Greentech Plant, the expected positive results of the
engineering report. 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