Sigma Lithium Secures Major Lithium Fines Contract and Unlocks $96M Financing

Sigma Lithium (TSXV:SGML, NASDAQ:SGML) has closed a substantial transaction for high-purity lithium fines while simultaneously activating a production-backed financing facility, marking significant progress in its Brazilian mining operations. The company agreed to sell 150,000 metric tons (MT) of high-purity lithium fines—materials containing 1 percent lithium oxide—at a net price of US$140 per MT for delivery at Vitória port. The buyer maintains an option to acquire an additional 350,000 MT at market rates, providing operational flexibility as demand fluctuates.

Double-Volume Sales Structure Demonstrates Market Demand for Processed Fines

The optional volume mechanism reflects Sigma’s strategic approach to balancing committed supply with market responsiveness. The company emphasizes that its low-grade fines output achieves commercial viability through the Greentech processing facility, which employs dense media separation and dry stacking technologies. This extraction advantage has proven commercially attractive: customers processing the material achieve up to 60 percent recovery rates, yielding lithium concentrate grading above 4 percent lithium oxide—material currently valued around US$1,370 per MT on Shanghai Metals Market indices.

In essence, Sigma’s 150,000 MT fines sale generates equivalent value to approximately 70,000 MT of premium-grade concentrate. The February agreement follows an earlier January sale of 100,000 MT, establishing consistent demand momentum. Marina Bernardini, Vice President of Business Development at Sigma, highlighted the significance: “Sequential sales demonstrate how this material generates recurring value streams. Continuous buyer interest validates the commercial potential of the Low Grade Product.”

Production-Linked Credit Facility Accelerates Brazilian Mining Expansion

The new sale triggered activation of a US$96 million revolving credit facility, structured with a leading battery materials supplier through an unsecured binding agreement. The arrangement commits to delivering 70,500 MT of premium concentrate during 2026. Financing operates through a pre-payment schedule: US$8 million installments transfer 30 days prior to production and port delivery, with the initial disbursement completed on January 13. Each advance accrues interest at SOFR plus 1 percent over the 30-day cycle until final settlement at delivery.

Final pricing aligns with prevailing spot market quotations across major indices, ensuring the company captures favorable market conditions while maintaining financing certainty. This structure de-risks production planning and provides working capital ahead of concentrate shipments.

Technology Edge Powers Value Recovery in Brazilian Operations

Sigma’s competitive positioning stems from process innovations at its Greentech facility. The dense media separation and dry stacking approach minimizes environmental impact while maximizing mineral recovery efficiency. This technical advantage translates into client-side economics: the ability to reprocess fines into higher-grade material justifies the buyer’s acquisition of lower-purity fines, creating a sustainable value chain.

The combination of consecutive sales announcements and secured production financing signals operational continuity. With mining remobilization proceeding as planned and customer demand for processed materials validated through back-to-back contracts, Sigma has established dual revenue channels—direct fines sales plus high-grade concentrate supply—positioning the company to capitalize on expanding lithium demand in 2026 and beyond.