Sigma Lithium upsizes private placement by 42% to C$85 million on strong interest
(Kitco News) - Sigma Lithium (NASDAQ: SGML, TSXV: SGML) announced Monday that, owing to strong global investor interest, it has increased the size of its previously announced non-brokered private placement of common shares by approximately 42% to C$85 million.
The company said it now intends to issue approximately 7,234,042 common shares of the company (compared with approximately 5,106,383 common shares previously announced) at a price of C$11.75 per common share for expected aggregate gross proceeds of approximately C$85,000,000 (compared with C$60,000,000 previously announced).
"Leading global investors focused on ESG & sustainability, are expected to comprise the majority of the investors in the offering," the company said in a statement.
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.
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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.
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.