Sigma Lithium Secures Funds For Brazilian Flagship, Praises 'Significantly Lower' Interest Rates

Development Bank of Brazil (BNDES) sent a letter of intent to Canadian mining company Sigma Lithium SGML to provide additional funding for Grota do Cirilo, a lithium project in Minas Gerais, Brazil.

Sigma plans to invest $100 million (492.4 million reais) in a second processing plant to double output to 510,000 metric tons annually. Construction is slated to commence by the end of March, subject to final approval from BNDES and Sigma’s board.

"We are honored and delighted with the Letter of Intention received today from BNDES. Development Bank Debt awarded by Brazil has the potential to significantly improve our capital structure due to typical longer duration, significantly lower interest rates, and grace periods," stated Sigma CEO and co-chair Ana Cabral-Gardner.

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The Grota do Cirilo lithium project is expected to yield 766,000 metric tons of lithium annually upon completion.

Sigma obtained a full environmental license from the state government, allowing processing capacity expansion of up to 3.7 million tons annually.

The significance of Grota do Cirilo is clear from Sigma’s audited mineral resource, which has witnessed a remarkable 27% increase to 109 million tons. This growth placed Grota do Cirilo as the world’s fourth-largest operating industrial pre-chemical lithium beneficiation and mining complex.

Still, Sigma’s expansion goals go far beyond 109 million, with plans to increase the Grota do Cirilo mineral resource to 150 million tons.

The lithium market has faced a recent downturn, with prices dropping to $13,200 per ton, the lowest since 2020. However, Sigma Lithium remains optimistic about its strategic position, emphasizing its focus on producing environmentally and socially sustainable materials for the battery supply chain.

Despite the “recent deterioration in the outlook for lithium demand for the short term,” Sigma plans to produce low-cost and sustainable pre-chemical lithium concentrate, Cabral-Gardner said.

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