Sigma Lithium Corp (TSX-V:SGML, NASDAQ:SGML) and its unit Sigma Mineração (Sigma Brazil) are evaluating potential strategic alternatives for the companies after receiving several proposals from potential strategic partners.
Its shares jumped more than 17% to C$51 by 1pm in Toronto. Its Nasdaq-listed shares were up over 16% at US$37.36.
The company said in a statement that the proposals, which also relate to Sigma’s Grota do Cirilo sustainable lithium project in Brazil, differ in nature and structure and are subject to ongoing review and negotiations.
It has engaged Bank of America (BofA) Securities and BTG Pactual of Brazil as its financial advisers in connection with the strategic process.
"Sigma Lithium is humbled and pleased by the strong strategic interest in our businesses from industry leaders in the energy, auto, battery and lithium refining industries,” Sigma CEO Ana Cabral-Gardner commented.
“Our success is driven by the relentless commitment and tireless work ethic of our incredibly diverse team, who have been determined from the very beginning to build the most socially and environmentally sustainable producer of industrialized lithium materials in the world.”
Cabral-Gardner noted that Sigma Lithium has “inserted” Brazil in the global lithium supply chain as one of the most sustainable lithium producers while helping lift the people of the Vale do Jequitinhonha region by delivering and attracting billions of reais in investments.
“Our strategic review process coincides with our industry-first achievement of Triple Zero Green Lithium: zero carbon, zero tailings and zero hazardous chemicals,” she added.
“We recently disclosed the leaps in operational ramp-up at our Greentech lithium plant, including the success of our pioneer environmental tailings and water management industrial plant module, encompassing an innovative dry stacking of tailings coupled with water reuse.”
The company said it plans to conclude the strategic process this year but cautioned that it may not result in the completion of any specific transaction or outcome.
Additionally, it said it would consider all alternatives before selecting a strategic partner or agreeing on a transaction. Any decision would be put before a meeting of shareholders where a majority of minority shareholders would be required for the deciding vote.
“As a full-fledged global producer, Sigma Lithium's Board of Directors is conscious of its fiduciary duty and the responsibility involved in selecting our strategic partner, enabling Sigma Brazil to continue to take our country to the next level in securing its vital position within the global lithium supply chain,” Cabral-Gardner concluded.
~ Updated with share price movement ~
Contact the author at stephen.gunnion@proactiveinvestors.com