Sigma Lithium enters into negotiations with finalists in strategic review process
Sigma Lithium (NASDAQ: SGML, TSXV: SGML, BVMF: S2GM34) announced on Monday that will continue its strategic review process into 2024. The company has entered into contractual and detailed structural negotiations with finalists.
The company has been evaluating strategic alternatives, with parties expressing interest in acquiring the company, its subsidiary Sigma Brazil, and its Grota do Cirilo project in Brazil.
In addition, Sigma Brazil is initiating the procedures for a primary listing of its shares on both Nasdaq and Singapore Stock Exchange.
“Such listings can help maximize shareholder value, should the selected alternative in its strategic review process involve only Sigma Brazil,” the company said in a press release.
The company has held talks with Tesla and other automakers about supplying the key battery ingredient in the coming years.
“We are delighted with the overwhelming interest in our business from some of the most admired companies in the battery materials and electric vehicles industries globally, including automakers and battery manufacturers,” said Sigma CEO Ana Cabral.
“We are also honored with the direct engagement of C-level executives and board members from the consortiums with our leadership during this strategic process, significantly strengthening our relationships with global leaders and key decision makers of our industry.”
The miner is currently producing lithium from its Grota do Cirilo Project in Brazil. Phase 1 of the project is expected to produce 270,000 tonnes of 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).
According to the company, Grota do Cirilo uses 100% renewable energy, 100% recycled water and 100% dry-stacked tailings.
Shares of Sigma Lithium surged 10.6% by 9:15 a.m. EDT. The lithium developer has a market capitalization of $2.93 billion.