Make Kitco Your Homepage

Sigma Lithium upsizes its placement by 60% to C$136.7M with investment from BlackRock

Kitco News

Welcome to Kitco News' 2022 outlook series. The new year will be filled with uncertainty as the Federal Reserve looks to pivot and tighten its monetary policies. At the same time, the inflation threat continues to grow, which means real rates will remain in low to negative territory. Stay tuned to Kitco News to learn from the experts on how to navigate turbulent financial markets in 2022.

(Kitco News) -Sigma Lithium (TSXV: SGML) said today that funds and accounts managed by BlackRock will make an additional total investment in the company of approximately C$64.2 million.

In a statement, the company noted that this additional investment further increases the size of its previously announced non-brokered private placement of common shares by 60% to approximately C$136.7 million.

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.

Equinox to sell its Mercedes gold mine in Mexico to Bear Creek for $125M in cash and shares

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

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.