Sigma Lithium Corp (TSX-V:SGML, NASDAQ:SGML) has “vehemently denied” recent media reports that inaccurately denominated certain conditions established upon the approval by Brazilian Courts of the transfer of two Exploration Sub-Plots by RIX to Sigma Brazil.
In a statement, the Brazilian lithium developer said that the reports incorrectly termed these conditions as an "injunction," which Sigma Lithium denies.
The reports that the transfer of exploration subplots will hinder Phase 2&3 expansion plans are “categorically incorrect,” according to Sigma, which added that the decision by the courts approving the transfer with certain conditions was fair and in line with Brazilian Mining Law.
Sigma stated that the Brazilian Courts approved the transfer of the Exploration Sub-Plots by RIX to Sigma Brazil without any cost. Additionally, the courts ruled that any undue loss to RIX can be resolved through financial compensation amongst RIX shareholders.
This compensation is an internal matter related to RIX and does not impact Sigma Brazil or Sigma Lithium, the company stated.
Furthermore, Sigma Lithium confirms that the Exploration Sub-Plots do not contain any mineral reserves.
"Approving the transfer with conditions was a wise decision by the Brazilian Courts, ruling in line with the Brazilian Mining Law, not only validated the transfer, but also solved the matter of whether the Exploration Sub-Plots might contain economically mineable ore,” Paula Lacava, Sigma’s chief legal counsel said in a statement.
The company affirmed that its Phase 2 and 3 expansion plans are proceeding as planned.