HIGHLIGHTS
- Sigma Lithium completed the certification process
with BNDES, which included the filing of the final FEL3 Capex
for Construction and Engineering of the Second Greentech Plant
totaling R$ 492,4 million or
approximately US$ 100
million
- The Letter of Intention by BNDES outlines its intention
to extend the Company development bank debt financing ("Development
Bank Debt") to fund the Second Greentech industrial lithium
concentrate production plant ("Second Greentech Plant") at Vale do
Jequitinhonha in Brazil.
- Sigma is also pleased to announce it was awarded a
concomitant LP, LI, LO environmental license to install and operate
("Full Environmental License") the Second Greentech Plant by the
State of Minas Gerais on January 31,
2024.
- The Company's impeccable sustainability track record led it
to receive, once more, a unanimous vote by all members of the
independent environmental board (COPAM), which votes and awards
environmental licenses in Minas Gerais, including the vote of the
board members representing the NGOs.
- The Full Environmental License allows the Company to further
expand its industrial beneficiation and processing capacity of
lithium minerals to up to a total of 3.7 million tonnes per
year.
- With the Second Greentech Plant, Sigma expects to
significantly increase its production capacity of its Quintuple
Zero Green Lithium from the current 270,000 tonnes (on an
annualized basis) by approximately 240,000 tonnes (at a design
estimated capacity at 6% Li2O) to approximately 510,000 tonnes.
- The Second Greentech Plant will introduce additional
innovations that will further increase the efficiency of its
industrial process to beneficiate spodumene ore into Quintuple Zero
Green Lithium.
- Sigma's learning curve while commissioning the
First Greentech Plant, rapidly achieving nameplate capacity
has been essential to its ability to innovate and further enhance a
process that beneficiates spodumene ore into pre-chemical lithium
concentrate.
- Sigma anticipates initiating construction in the first
quarter of 2024 at the end of the wet raining season, following a
Final Investment Decision to be made by its Board of
Directors.
SÃO
PAULO, Feb. 12, 2024 /PRNewswire/ -- Sigma
Lithium Corporation ("Sigma Lithium" or the
"Company") (NASDAQ: SGML, BVMF: S2GM34, TSXV:
SGML), a leading global lithium producer dedicated to
powering the next generation of electric vehicles with carbon
neutral, socially and environmentally sustainable lithium
concentrate, is pleased to announce that it received a Letter of
Intention for a project finance credit line ("Development Bank
Credit Line") from the Development Bank of the Brazil (the "BNDES"). The Development Bank
Credit Line will be used for the expansion of the Company's world
class unique Quintuple Zero Green Lithium Grota do Cirilo project
in Vale do Jequitinhonha in Brazil
(the "Project").
The Letter of Intent is non-binding, as the
consummation of the Development Bank Credit Line remains subject to
completion of: (i) observation of operating policies of BNDES in
place during the review of Sigma Lithium's project finance
application; (ii) review of the financing structure proposed by the
Company; (iii) the Company submission of satisfactory collateral
to BNDES. The closing of the Development Bank Credit Line is
subject to the final credit approval by BNDES Credit Committee,
negotiation of definitive documentation and other customary closing
conditions, followed by final credit approval for each draw-drown.
The financial cost of this type of credit line is typically based
on the Brazilian reference rate ("taxa referencial" or "TR").
However, the closing conditions do not include
lithium market-related conditions and pricing elements that fall
outside of the control of the Company.
The development bank credit line is part of a
broader strategic plan by BNDES to foster in Brazil the development of a world class
competitive industrial supply chain to lead the global supply of
environmentally and socially sustainable battery materials.
BNDES stated in the letter that the financing for
projects to increase industrial production capacity of critical
minerals is one of the priorities of BNDES's long term strategy to
support the development of a strong, green and inclusive industrial
base in Brazil.
Ana
Cabral-Gardner, CEO and Co-Chairman said: "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. Having BNDES
as a creditor represents the support of the government of
Brazil to Sigma Lithium's
industrial expansion plans at Vale do Jequitinhonha."
She added "Despite the recent deterioration in
the outlook for lithium demand for the short term, the Company
believes that with the appropriate capital structure enabled by
this development bank financing, it has a unique opportunity to
solidify its global industrial competitive leadership in producing
low cost and sustainable pre chemical lithium concentrate. We share
with BNDES the belief that the Company's competitive leadership
could become the vector to attract to Brazil other global industrial players in the
battery supply chain, who are focused in producing using
environmentally and socially sustainable materials supplying the
next generation of electric vehicles: aligned with the ethos of its
climate conscious consumers".
"This BNDES support also allows Sigma to
further amplify its transformational impact in the Vale do
Jequitinhonha, one of the poorest regions in the country:
illustrating the effects of how a just and inclusive energy
transition has the potential to lift an entire region. Sigma
Lithium has been operating with an ESG-centered strategy since it
was founded: it is now producing the most sustainable lithium in
the world, staying at the forefront of environmental practices,
effecting economic impact in the community and maintaining a
diverse Board with the transparency and compliance of a Nasdaq US
listed public company", she added.
ABOUT SIGMA LITHIUM
Sigma Lithium
(NASDAQ: SGML, BVMF: S2GM34, TSXV: SGML) is a leading global
lithium producer dedicated to powering the next generation of
electric vehicle batteries with carbon neutral, socially and
environmentally sustainable chemical-grade lithium concentrate.
Sigma Lithium has been at the forefront of
environmental and social sustainability in the EV battery materials
supply chain for six years and it is currently producing Quintuple
Zero Green Lithium from its Grota do Cirilo Project in Brazil. Phase 1 of the project is expected to
produce 270,000 tonnes of Quintuple Zero Green 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). The project produces Quintuple
Zero Green Lithium in its state-of-the-art Greentech lithium plant
that uses 100% renewable energy, 100% recycled water and 100%
dry-stacked tailings.
Please refer to the Company's National Instrument
43-101 technical report titled "Grota do Cirilo Lithium Project
Araçuaí and Itinga Regions, Minas Gerais, Brazil, Amended and Restated Technical Report"
updated January 18, 2024, which was
prepared for Sigma Lithium by Marc-Antoine
Laporte, P.Geo, SGS Canada Inc; and Iran Zan, MAIG, Sigma
Lithium. The Updated Technical Report is filed on SEDAR and is also
available on the Company's website.
The Amended and Restated Technical Report
from January 18, 2024 shows a Consolidated Mineral
Resource on the Grota do Cirilo property of 94.3Mt of Measured and
Indicated Resources at a grade of 1.40% Li2O and Inferred Resources
of 14.6Mt also at a grade of 1.37% Li2O.
For more information about Sigma Lithium, visit
https://www.sigmalithiumresources.com/
Sigma Lithium
LinkedIn: Sigma Lithium
Instagram: @sigmalithium
Twitter: @SigmaLithium
FORWARD-LOOKING STATEMENTS
This news release includes certain
"forward-looking information" under applicable Canadian and U.S.
securities legislation, including but not limited to statements
relating to timing and costs related to the general business and
operational outlook of the Company, the environmental footprint of
tailings and positive ecosystem impact relating thereto, donation
and upcycling of tailings, timing and quantities relating to
tailings and Green Lithium, achievements and projections relating
to the Zero Tailings strategy, achievement of ramp-up volumes,
production estimates and the operational status of the Grota do
Cirilo Project, and other forward-looking information. All
statements that address future plans, activities, events,
estimates, expectations or developments that the Company believes,
expects or anticipates will or may occur is forward-looking
information, including statements regarding the potential
development of mineral resources and mineral reserves which may or
may not occur. Forward-looking information contained herein is
based on certain assumptions regarding, among other things: general
economic and political conditions; the stable and supportive
legislative, regulatory and community environment in Brazil; demand for lithium, including that
such demand is supported by growth in the electric vehicle market;
the Company's market position and future financial and operating
performance; the Company's estimates of mineral resources and
mineral reserves, including whether mineral resources will ever be
developed into mineral reserves; and the Company's ability to
operate its mineral projects including that the Company will not
experience any materials or equipment shortages, any labour or
service provider outages or delays or any technical issues.
Although management believes that the assumptions and expectations
reflected in the forward-looking information are reasonable, there
can be no assurance that these assumptions and expectations will
prove to be correct. Forward-looking information inherently
involves and is subject to risks and uncertainties, including but
not limited to that the market prices for lithium may not remain at
current levels; and the market for electric vehicles and other
large format batteries currently has limited market share and no
assurances can be given for the rate at which this market will
develop, if at all, which could affect the success of the Company
and its ability to develop lithium operations. There can be no
assurance that such statements will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not
place undue reliance on forward-looking information. The Company
disclaims any intention or obligation to update or revise any
forward-looking information, whether because of new information,
future events or otherwise, except as required by law. For more
information on the risks, uncertainties and assumptions that could
cause our actual results to differ from current expectations,
please refer to the current annual information form of the Company
and other public filings available under the Company's profile at
www.sedar.com.
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this news release.
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SOURCE Sigma Lithium