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Sigma lithium (NASDAQ:SGML) +1.6% pre-market Monday after announcing it had received a letter of intent for a project finance line of credit from the Development Bank of Brazil to be used for the Quintuple Zero Green expansion Grota do Cirilo Lithium Project.
The letter of intent is non-binding, as the consumption of the development bank credit line remains subject to observation of the BNDES operational policies in place during the review of the Sigma Lithium (SGML) project finance application, structure review financing proposed by the company, and submission of satisfactory collateral guarantees to BNDES.
Sigma Lithium (SGML) said that “with the appropriate capital structure enabled by this development bank financing, it has a unique opportunity to consolidate its global industrial competitive leadership in the production of sustainable, low-cost prechemical lithium concentrate” .
The company recently announced a significant increase in its controlled mineral resource to 109 million tonnes of measured, indicated and inferred mineral resource at Grota do Cirilo.