Sigma Lithium (TSXV, NASDAQ: SGML) has secured a 487 million reais ($86 million) loan from the National Brazilian Bank for Economic and Social Development (BNDES) to totally fund a second lithium concentrate plant in Vale do Jequitinhonha.
The Vancouver-based 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,” Sigma CEO Ana Cabral said in a news release.
Located in the mining-rich state of Minas Gerais, Grota do Cirilo contains 77 million tonnes at 1.40% lithium oxide.
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.
