11:33 AM EDT, 07/29/2024 (MT Newswires) -- Sigma Lithium ( SGML ) on Monday said it signed an inaugural deferred US$22.4 million letter of credit for export financing with Banco do Brasil.

The agreement allows Sigma to gain access to low-cost trade financing through the bank, improving its commercial flexibility and market access.

As a result of the lower-interest export credit lines, Sigma will phase out the existing trade lines in its treasury, cutting its recurring interest expenses.

Sigma produces Quintuple Zero Green Lithium at its Greentech lithium plant that delivers zero carbon lithium. Phase 1 of the project entered commercial production in the second quarter of 2023 and has an annual capacity of 270,000 tonnes of concentrate. The company in April approved a Phase 2 expansion of the plant to nearly double capacity to 520,000 tonnes.

Sigma shares were last seen down $0.72 to $15.28 on the TSX Venture Exxchange.

Price: 15.28, Change: -0.72, Percent Change: -4.50