The Grota do Cirilo project, which will reach production in the near term, has the potential to be one of the biggest integrated lithium producers globally, co-CEO and co-chairperson Calvyn Gardner said on Monday, announcing the results of an expansion study.
The study contemplates tripling integrated production of battery grade sustainable lithium concentrate from 270 000 t/y, starting in 2023, to 768 000 t/y in the second year.
The study also demonstrated robust project economics, highlighted by an aftertax net present value, using an 8% discount, of $15.3-billion, incorporating production from Phase 1, combined with Phase 2 and Phase 3.
Sigma explained that the expansion could be achieved by the addition to the Greentech lithium plant of a single, bigger additional dense media separation module, pared with a proportional crushing module.
To increase mining feedstock for the expansion of the lithium plant would require the construction of Phase 2 and Phase 3 mines.
Sigma also made progress on debt financing, announcing the signing of definitive agreements for up to $100-milion senior secured pre-export financing with Synergy Capital – one of its current shareholders – based in the United Arab Emirates.
The debt financing would fully fund the company until August next year, including the initiation of detailed engineering and initiation of construction of the project expansion. The financing would also fund working capital requirements for the entire commissioning period of the plant, as well as for general corporate purposes.
The initial $60-million drawdown would close before the end of the month.
Total capital expenditure for the expansion is estimated at $155-million.
Sigma said that construction of the expansion could be initiated with earthworks and the ordering of long-lead items in the first quarter of 2023, once a final decision has been made.