SIGMA LITHIUM SIGNS INAUGURAL DEFERRED US$ 22.4 MILLION LETTER OF CREDIT EXPORT FINANCING WITH BANCO DO BRASIL

Core Viewpoint - Sigma Lithium Corporation has signed a US$ 22.4 million deferred letter of credit for export financing with Banco do Brasil, which will enhance its commercial power and reduce interest expenses, thereby improving competitiveness in the lithium market [1][11]. Group 1: Financial Developments - The company will phase out existing trade lines in its treasury due to the lower interest export credit lines, leading to decreased recurring interest expenses [2]. - The transaction allows Sigma Lithium to offer 90-day "export vendor financing" to clients at very low interest rates, calculated based on recent production and shipment prices [11]. - The financing agreement is expected to enhance Sigma Lithium's commercial flexibility and market access, allowing it to institutionalize a price premium for its lithium concentrate [12][13]. Group 2: Production Capacity and Sustainability - Sigma Lithium's Phase 1 project entered commercial production in the second quarter of 2023, with an annual capacity of 270,000 tonnes of concentrate (36,700 tonnes of lithium carbonate equivalent) [9][13]. - The company has approved a Final Investment Decision to expand capacity to 520,000 tonnes of concentrate through a Phase 2 expansion of its Greentech Plant [9]. - Sigma Lithium is committed to producing "Quintuple Zero Green Lithium," which is characterized by zero carbon emissions, zero dirty power, zero potable water usage, zero toxic chemicals, and zero tailings dams [4][13]. Group 3: Strategic Partnerships - The partnership with Banco do Brasil marks a significant milestone for Sigma Lithium, as it gains access to trade financing instruments typically available to Brazil's largest exporters [7][12]. - The collaboration aims to strengthen Sigma Lithium's position in the Brazilian green industrialization of battery materials [7].