Sigma Lithium (TSX-V:SGML) has extended the maturity of US$100 million ($142.5 million) in senior secured debt with Synergy Capital by six months.
The facility will now mature in June 2027 rather than December 2026.
Its interest rate remains unchanged at the secured overnight financing rate plus 6.95% annually. The existing covenants and events of default also remain in place.
Sigma says the extension gives it additional time to increase production and rebuild operating cash flow following the restart of its Brazilian operations.
The company produced 7,090 tonnes of lithium oxide concentrate between restarting operations on 5 October and 22 October.
The restart followed a Brazilian Federal Court of Appeals decision reinstating Sigma’s environmental licences, as previously reported by Mining.com.au.
Sigma continues to target annualised lithium oxide concentrate production of 330,000 tonnes by the end of 2027.
The company says it has repaid more than US$90 million since the second quarter of 2024, reducing total debt by about 40% over two years to US$125 million as of 21 October.
CEO Ana Cabral expects the company to rebuild cash flow as production increases.
“Together with our low costs and current lithium pricing levels, we expect to regain operational cash flow momentum,” she says.
Sigma expects to report its third-quarter production, sales, realised prices, costs, and cash position by 13 November.
Sigma Lithium owns and operates the Grota do Cirilo lithium operation in Minas Gerais, Brazil.
Write to France Pinzon at Mining.com.au
Main image: Sigma Lithium
