03:37 PM EDT, 08/29/2024 (MT Newswires) -- Sigma Lithium ( SGML ) said Thursday it received a binding letter from National Brazilian Bank for Economic and Social Development for a 486.8 million Brazilian reais ($86.6 million) development loan.

The development loan will fund construction of a second greentech carbon neutral industrial production plant for lithium concentrate at Vale do Jequitinhonha in Brazil, according to the company.

The loan will be repaid in 16 years and has an annual interest rate of 7.45%, Sigma added.

The company said it is retiring most of the unused existing short term trade finance lines using its current cash position.

Company shares were up nearly 12% in recent trading.

Price: 11.40, Change: +1.20, Percent Change: +11.72