Sigma Lithium Corporation said it ended its 2021 financial year with C$155.4 million in cash and cash equivalents, giving it enough liquidity to move its Grota do Cirilo project into production.
The lithium company said it has fully financed the capital expenditures estimated for the construction of the Phase 1 plant and Phase 1 mine by completing two equity financings in 2021, which raised gross proceeds of C$178.7 million.
Construction of the project remains on schedule and on budget, Sigma said, with Phase 1 plant commissioning expected to begin at the end of 2022.
READ: Sigma Lithium highlights environmental and social achievements in the Vale do Jequitinhonha region of Brazil
Vancouver-based Sigma said it is on track to deliver near-term production of battery-grade sustainable lithium within less than 12 months, and planning to significantly increase the scale in the coming years.
Initial production is aiming to deliver 230,000 tonnes per annum (tpa), and that is expected to double to 460,000 tpa in Phase 2.
Sigma has already secured an offtake term sheet with LG Energy Solution on a take-or-pay basis for up to 100,000 tpa.
In the coming months, Sigma said it is planning to release an updated Phase 1 feasibility study containing FEL3 detailed engineering and construction capex, and a prefeasibility study with combined economics of Phase 1 and Phase 2.
On the environmental, social and governance (ESG) front, the company said it will initiate construction of rainwater capture structures to support regional agriculture in partnership with Brazil’s ministry of agriculture, and launch a microcredit program.
Grota do Cirilo is one of the largest and highest-grade hard rock lithium spodumene deposits in the Americas.
The company's cash balance stands at C$141.9 million in cash and cash equivalents as of March 30, 2021.
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