Canada-listed Sigma Lithium has completed its private placement, raising CAD 136.7 million ($106.68m) in gross proceeds, Kallanish reports.

The company sold 11.63m common shares in the oversubscribed placement, mainly to current shareholders who are focused on sustainable energy transition. Investment by funds and accounts managed by BlackRock reached CAD 64.2m.

The funds will fully cover the construction of Sigma’s phase 1 production plant and mine at the Grota do Cirilo lithium project in Minas Gerais state, Brazil. Sigma will also use the proceeds to further develop phases 2 and 3, as well as for general corporate purposes.

Phase 1 construction started earlier this month, with production set to start-up in the fourth quarter of 2022. The company is targeting capacity to produce up to 220,000 tonnes/year of high-purity lithium concentrate, equal to 33,000 t/y of lithium carbonate equivalent (LCE).

In Phase 2, the company plans to double production capacity to 440,000 t/y of spodumene concentrate or 65,000 t/y of LCE by around late 2023. Details of a potential Phase 3 are yet to be disclosed.

The Grota do Cirilo Project hosts the largest hard rock lithium deposit in the Americas and has been producing battery grade spodumene since 2018 under pilot scale. Sigma has secured offtake agreements for 100% of its Phase 1 production with Mitsui and LG Energy Solution.

Boasting the project’s environmentally and social sustainability, thanks to the use of 100% hydropower, dry stacking tailings and water recirculation, Sigma says the project is also low cost. It estimates Phase 1 costs at $342/t cif China and Phase 2 at $360/t cif China.