Sigma Lithium awarded LOI from BNDES for project finance credit line

Sigma Lithium announced that it received a letter of intention, or LOI, for a project finance credit line from the Development Bank of the Brazil, or BNDES. The Development Bank Credit Line will be used for the expansion of the company’s world class unique Quintuple Zero Green Lithium Grota do Cirilo project in Vale do Jequitinhonha in Brazil. The letter of intent is non-binding, as the consummation of the Development Bank Credit Line remains subject to completion of: observation of operating policies of BNDES in place during the review of Sigma Lithium’s project finance application; review of the financing structure proposed by the company; the company submission of satisfactory collateral to BNDES. The closing of the development bank credit line is subject to the final credit approval by BNDES Credit Committee, negotiation of definitive documentation and other customary closing conditions, followed by final credit approval for each draw-drown. The financial cost of this type of credit line is typically based on the Brazilian reference rate. However, the closing conditions do not include lithium market-related conditions and pricing elements that fall outside of the control of the company.