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Sigma Lithium Announces the Signing of an Engineering Contract with Duro Felguera and a Letter of Intent from Spanish Export Credit Agency to Provide Financing
Front end engineering design work will commence in August 2020. Spanish Export Credit Agency (CESCE) is expected to finance up to 85% of the contract value. VAN
About this update from Sigma Lithium Corporation
[{"type":"text","content":" Front end engineering design work will commence in August 2020. Spanish Export Credit Agency (CESCE) is expected to finance up to 85% of the contract value. VANCOUVER, British Columbia, July 21, 2020 (GLOBE NEWSWIRE) -- SIGMA Lithium Resources Corporation (“Sigma” or the “Company”) (TSX-V: SGMA) (OTC- QB: SGMLF) is pleased to announce the signing of a front-end engineering design contract (“FEED Contract”) with Duro Felguera S.A of Spain (“DF”) for the second phase of early contractor involvement (“ECI”) for the engineering, procurement and construction (“EPC”) of Sigma’s Grota do Cirilo lithium project in Brazil (the “Project”). Sigma and DF have received a letter of intent from the Spanish Export Credit Insurance Agency (CESCE) to provide financing for up to 85% of the amount of the FEED Contract. Primero Group of Australia (“Primero”) will be the nominated engineering firm in the Contract. DF and Primero are expected to undertake the work between August 2020 and November 2020. Sigma is currently mobilizing to site geotechnical drilling companies. Sigma anticipates commencing construction of the Project in the fourth quarter of 2020. Early Contractor Involvement and EPC Contract The ECI Phase 2 – Front End Engineering Design: DF and Primero will perform detailed engineering, enhancing and improving the design and efficiencies in the processing plant, thereby further reducing risk. DF and Primero will also perform all of the work involved in completing the EPC contract, targeting an improved EPC lump sum turnkey price for the construction. DF offered Sigma its EPC services as a fully integrated package, provided that the final lump sum turnkey price is within the Multicurrency GMP, as defined below, and certain technical and commercial parameters are met during the second phase. The ECI Phase 1 - Guaranteed Maximum Price: this phase was successfully completed by DF and Primero, as announced on June 15, 2020. DF provided a multicurrency guaranteed maximum price for the EPC of the Project, on a lump sum turnkey basis, in the combined amounts of US$ 23 million and R$ 182 million, totaling US$ 58 million (at US$ 1.00 = R$ 5.20) (the “Multicurrency GMP”). The Multicurrency GMP is lower than the US$66 million estimated in the NI 43-101 Technical Report on Grota do Cirilo Project Feasibility Study fi...