Sigma Lithium to raise C$60 million for its future lithium operation in Brazil
(Kitco News) - Sigma Lithium (NASDAQ: SGML, TSXV: SGML) today announced that it intends to complete a non-brokered private placement to raise approximately C$60,000,000 (or approximately US$47,244,094).
The company said that approximately 5,106,383 common shares of the company to be issued at a price of C$11.75 per common share and that leading global investors focused on ESG & sustainability are expected to comprise the majority of the investors in the offering.
Sigma Lithium added it expects to use the net proceeds of the offering for the construction and development of its wholly owned Grota do Cirilo project and for general corporate purposes, at the sole discretion of the company.
The company pointed out it is developing the largest hard rock lithium deposit in the Americas, located in its wholly owned Grota do Cirilo project in Brazil with the goal of participating in the rapidly expanding global supply chain of electric vehicles.
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Based on the Feasibility Study report, the company indicated its plans to produce 220,000 tonnes annually of battery grade lithium concentrate lithium (33,000 tonnes of lithium carbonate equivalent ("LCE")) in Production Phase 1 and expects to be amongst the world's lowest-cost producers.
In Production Phase 2, if warranted after ongoing feasibility study, production would be increased to 440,000 tonnes (65,000 tonnes of LCE) annually.
Previously, the company announced that it is on track to begin production in the fourth quarter of 2022.