Sigma Lithium signs $100M (U.S.) bank guarantee

Executive Summary

• Sigma Lithium Corp. has signed a $100 million (U.S.) collateralized bank guarantee with a major Brazilian bank to support the construction of its second greentech industrial plant.
• The guarantee is fully collateralized by the company's clients through a blend of corporate guarantees, letters of credit, and export receivables.
• This facility enables access to development bank financing and supports the expansion of annual production capacity from 270,000 tonnes to 520,000 tonnes of high-grade premium lithium oxide concentrate.

Key Details

• Transaction Structure: A $100 million (U.S.) collateralized bank guarantee signed with a major Brazilian bank.
• Collateralization: Fully collateralized by Sigma Lithium’s clients via a mix of corporate guarantees, letters of credit, and export receivables, to be mutually agreed upon by the parties.
• Purpose: To support the construction and installation of "Greentech Industrial Plant 2" and to enable access to development bank financing.
• Production Impact: The expansion aims to double the company's nameplate annual production capacity from 270,000 tonnes to 520,000 tonnes of high-grade premium lithium oxide concentrate.
• Technology: Plant 2 will replicate the environmentally sustainable technologies of Plant 1, including dry stacking, 100% water reuse, zero toxic chemicals, and 100% renewable electricity.
• Current Capacity: The company currently produces approximately 38,000 to 40,000 tonnes of Lithium Carbonate Equivalent (LCE) annually at its Grota do Cirilo operation.
• Regulatory Status: The guarantee is subject to the completion of definitive written agreements consistent with a preliminary letter of intention.
• Regional Impact: The company employs 13,000 people directly and indirectly in the Vale do Jequitinhonha region and benefits an additional 21,000 people through social inclusion programs.

Notable Quotes

• "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." — Ana Cabral, Co-chairperson
• "Furthermore, this expansion reinforces our commitment to fostering sustained economic growth and prosperity in the communities of the Jequitinhonha Valley... That prosperity became a reality 14 years later, driven by the significant economic development generated by the company's shareholders investments in building and implementating the fifth-largest global lithium industrial mineral complex in the Vale do Jequitinhonha, now the largest producer in the Americas of industrialized lithium oxide." — Ana Cabral, Co-chairperson