HIGHLIGHTS
- Sigma Lithium signed on July 24,
2024 a deferred US$ 22.4
million letter of credit (the "Transaction") with Banco do
Brasil.
- This Transaction strengthens Sigma's commercial power,
enabling it to offer 90-day "export vendor financing" to its
clients at very low interest rates.
- The Transaction amount was calculated based on the 22,000t
July 5th production and shipment at
the price of 8.75% of Lithium Hydroxide quoted
at LME.
- The Transaction represents the inaugural solution for the
Company developed in tandem with Banco do Brasil to deepen Sigma
Lithium's commercial partnerships during the seasonal lithium
purchase cycles.
- As a result of the Transaction, Sigma Lithium will gradually
phase out existing trade finance lines (drawn but mostly unused in
the Company's treasury) and move from a position of receiving
advance payments (at a higher cost) to providing vendor financing
and widening its client base.
- The Transaction allows Sigma Lithium to further improve its
competitive position by strengthening commercial flexibility with
the goal of institutionalizing a premium for its lithium
concentrate.
- The Company's ability to access this category of export
financing demonstrates it has achieved maturity as producer within
its first year of operations.
SÃO PAULO, Brazil, July 29,
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 it signed an inaugural deferred
US$ 22.4 million letter of credit for
export financing with Banco do Brasil at very low interest
rates.
As Sigma matures as an industrial producer and demonstrates its
ability to consistently deliver its Quintuple Zero Green Lithium,
it gained access to access low-cost trade finance mechanisms
through Banco do Brasil, available to the country's largest
industrial exporters. These agreements enhance Sigma Lithium's
commercial flexibility and market access.
As a result of the lower interest export credit lines, the
Company will phase out the existing trade lines in its treasury,
thus decreasing the Company's recurring interest expenses and
further improving its competitiveness.
Ana Cabral, Co-Chair and CEO of
Sigma Lithium notes, "We have reached a significant milestone in
our journey as a producer, achieving the maturity to access trade
financing instruments available to Brazil's largest exporters. We are honored to
be working with Banco do Brasil, the country's largest bank, which
has extended through its balance sheet in Asia highly competitive interest rates to
Sigma Lithium. Banco do Brasil has a history of more than a
century in fostering the development of industrial exporters in the
country. With this inaugural Transaction with Sigma Lithium, one of
the world's largest producers of industrial lithium materials,
Banco do Brasil strengthens its leading position in developing the
Brazilian green industrialization of future facing battery
materials."
"Maintaining a consistent shipping schedule, demonstrating
our product quality and low costs, as well as our ability to market
to downstream battery and auto makers, has opened these additional
credit opportunities for Sigma. The Transaction enhances the
Company's flexibility in how it markets its Quintuple Zero Green
Lithium, ultimately helping to institutionalize a price premium
that reflects its superior chemical qualities."
ABOUT SIGMA LITHIUM
Sigma Lithium (NASDAQ: SGML, TSXV: SGML, BVMF: S2GM34) 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 is one of the world's largest lithium producers
with an annual production capacity of 270,000 tonnes of chemical
grade lithium concentrate (36,700 LCE annually). The Company
operates at the forefront of environmental and social
sustainability in the EV battery materials supply chain at its
Grota do Cirilo Operation in Brazil. The Company produces Quintuple Zero
Green Lithium at its state-of-the-art Greentech lithium plant that
delivers zero carbon lithium, produced with zero dirty power, zero
potable water, zero toxic chemicals and zero tailings' dams.
Phase 1 of the project entered commercial production in 2Q23 and
has an annual capacity of 270,000 tonnes of concentrate (36,700 LCE
annually).The Company has issued a Final Investment Decision
formally approving construction to nearly double capacity to
520,000 tonnes of concentrate through the addition of a Phase 2
expansion of its Greentech Plant.
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"
issued March 19, 2024, which was
prepared for Sigma Lithium by Homero
Delboni Jr., MAusIMM, Promon Engenharia; Marc-Antoine Laporte, P.Geo, SGS Canada Inc;
Jarrett Quinn, P.Eng., Primero Group
Americas; Porfirio Cabaleiro
Rodriguez, (MEng), FAIG, GE21 Consultoria Mineral; and
William van Breugel, P.Eng (the
"Updated Technical Report"). The Updated Technical Report is filed
on SEDAR and is also available on the Company's website.
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 Groto 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 Corporation
