Sigma Lithium secures $100 million for Brazil mine expansion

Sigma Lithium (TSX-V; NASDAQ: SGML) has secured up to $100 million from shareholder Synergy Capital to build the initial phase of a $155-million expansion at its Grota do Cirilo lithium project in Minas Gerais, Brazil.

The Canadian miner said the debt-financing deal extends until August 2023, which gives it enough time to ramp up production at Grota do Cirilo, the largest hard rock lithium deposit in the Americas.

Commissioning of the lithium mine is expected this month, with first shipments beginning in the second quarter of 2023, the company said.

During this first production phase, Grota do Cirilo is expected to generate up to 270,000 tonnes per year of high purity battery grade lithium concentrate, equal to about 36,700 tonnes per year of lithium carbonate equivalent (LCE).

Based on the results of a study to triple battery-grade lithium concentrate production, Sigma said the project has the potential to churn out 768,000 tonnes (104,200 tpa LCE) from the second to the eighth year of operations.