Sigma Lithium secures $100 million bank guarantee for plant expansion

Sigma Lithium Corporation (NASDAQ: SGML) announced it signed a $100 million collateralized bank guarantee with a major Brazilian bank to support construction of its second production facility.

The guarantee will be collateralized by the company's clients through corporate guarantees, letters of credit and export receivables. The financing will fund construction of Greentech Industrial Plant 2, which would increase annual production capacity from 270,000 tonnes to 520,000 tonnes of lithium oxide concentrate.

The bank guarantee is subject to completion of definitive written agreements with all parties, consistent with terms in a preliminary letter of intention already signed.

"The support from our banking partners in Brazil and global clients for our lithium oxide underscores the strength of these relationships, the competitiveness of our industrialized product and their confidence in our management team and business strategy," said Ana Cabral, Co-Chairperson of Sigma Lithium.

The company operates what it describes as the fifth-largest industrial-mineral complex for lithium oxide concentrate at its Grota do Cirilo operation in Brazil. According to the company, it currently produces approximately 38,000-40,000 tonnes of lithium carbonate equivalent annually.

Sigma Lithium also trades on the TSX Venture Exchange (TSXV: SGML) and the Brazilian stock exchange (BVMF: S2GM34). The company states it employs 13,000 people directly and indirectly in the Jequitinhonha Valley region of Brazil.

The information is based on a company press release.

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