Sigma Lithium (TSX-V, NASDAQ: SGML) has secured a BRL487 million ($86 million) loan from BNDES (National Brazilian Bank for Economic and Social Development) to totally fund a second lithium concentrate plant in Vale do Jequitinhonha, Brazil.
The miner has already initiated construction activities on site and plans to complete construction and commissioning in the summer of 2025.
The loan provides the company with a 16-year repayment period at a interest rate of 7.45% per year (below the current Brazilian sovereign interest rate of 10.5%).
With the second plant, Sigma expects to approximately double the production capacity of its Grota do Cirilo hard rock lithium mine from the current 270,000 tonnes per year to a total of 520,000 tonnes per year.
“Having BNDES as a creditor represents the support of the government of Brazil for Sigma Lithium’s industrial expansion plans at Vale do Jequitinhonha,” said Sigma CEO Ana Cabral.
Located in the mining-rich state of Minas Gerais, Grota do Cirilo contains 77 million tonnes at 1.40% lithium oxide (Li2O).
Sigma shares were down 1.8% to $10.82 apiece at 11 am in New York on Friday, capitalizing the company at $1.2 billion.
Source: MINING.COM – Read More
