VANCOUVER, BC, Oct. 25, 2021
/CNW/ - South Star Battery Metals Corp. ("South Star" or the
"Company") (TSXV: STS) (OTCQB: STSBF) is pleased to announce that
it has completed a non-brokered private placement of units (the
"Private Placement" or the "Offering") for a total proceeds of
C$2,427,700. The majority of
participation in the Placement was with key institutional
investors. Net proceeds from the Private Placement will be
used for advanced materials sample preparation, commercial
agreements, project finance and general working capital
requirements for the Company.
The Private Placement consists of 22,069,999 units priced at
C$0.11 per unit (the "Units"). Each
Unit consists of one (1) common share and one (1) common share
purchase warrant (the "Warrants"). Each Warrant entitles the holder
to purchase one additional common share of the Company at an
exercise price of C$0.15 per common
share for a period of three years from the date of issue. The
securities are subject to a four-month hold period from the date of
closing and approval by the TSXV, expiring February 26, 2022. In connection with the private
placement, the Company paid an aggregate amount of 294,000 in
brokers' warrants in connection with the Placement (equal to 6% of
the gross proceeds of the offering sold to subscribers introduced
to the Company by the brokers) and $33,660 in cash finders' fees were paid to
certain finders (equal to 6% of the gross proceeds of the offering
sold to subscribers introduced to the Company by the finders).
Acceleration Clause
If during a period of ten consecutive trading days between the
date that is four (4) months following the closing of the Private
Placement and the expiry of the Warrants the daily volume weighted
average trading price of the common shares of the Company on the
TSXV (or such other stock exchange where the majority of the
trading volume occurs) exceeds C$0.50
on each of those ten consecutive days, the Company may, within 30
days of such an occurrence, give written notice to the holders of
the Warrants that the Warrants will expire at 4:00 p.m. (Vancouver time) on the 30th day following the
giving of notice unless exercised by the holders prior to such
date. Upon receipt of such notice, the holders of the Warrants will
have 30 days to exercise their Warrants. Any Warrants which remain
unexercised at 4:00 p.m.
(Vancouver time) on the 30th day
following the giving of such notice will expire at that time.
About South Star Battery Metals Corp.
South Star Battery Metals Corp. is a Canadian battery-metals
project developer focused on the selective acquisition and
development of near-term production projects in the Americas. South
Star's Santa Cruz Graphite Project, located in Southern Bahia,
Brazil is the first of a series of
industrial and battery-metals projects that will be put into
production. Brazil is the
second-largest graphite-producing region in the world with more
than 80 years of continuous mining. Santa
Cruz has at-surface mineralization in friable materials, and
successful, large-scale, pilot-plant testing (>30t) has been
completed. The results of the testing show that approximately 65%
of Cg concentrate is +80 mesh with good recoveries and 95-99% Cg.
With excellent infrastructure and logistics, South Star is carrying
its development plan towards Phase 1 production projected in Q4
2022, pending financing. South Star trades on the TSXV under the
symbol STS, and on the OTCQB under the symbol STSBF.
South Star is committed to a corporate culture, project
execution plan and safe operations that embrace the highest
standards of ESG principles based on transparency, stakeholder
engagement, ongoing education, and stewardship. To learn more,
please visit the Company website at
http://www.southstarbatterymetals.com.
This news release has been reviewed and approved by Richard
Pearce, P.E., a "Qualified Person" under National Instrument 43-101
and President and CEO of South Star Battery Metals Corp.
On behalf of the Board,
Mr. Richard Pearce
Chief Executive Officer
Twitter: https://twitter.com/southstarbm
Facebook:
https://www.facebook.com/southstarbatterymetals
LinkedIn:
https://www.linkedin.com/company/southstarbatterymetals/
YouTube: South Star Battery Metals - YouTube
CAUTIONARY STATEMENT
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this press release.
Forward-Looking Information
The information contained herein contains "forward-looking
statements" within the meaning of applicable securities
legislation. Forward-looking statements relate to information that
is based on assumptions of management, forecasts of future results,
and estimates of amounts not yet determinable. Any statements that
express predictions, expectations, beliefs, plans, projections,
objectives, assumptions or future events or performance are not
statements of historical fact and may be "forward-looking
statements".
Forward-looking statements are subject to a variety of risks
and uncertainties which could cause actual events or results to
differ from those reflected in the forward-looking statements,
including, without limitation: risks related to failure to obtain
adequate financing on a timely basis and on acceptable terms; risks
related to the outcome of legal proceedings; political and
regulatory risks associated with mining and exploration; risks
related to the maintenance of stock exchange listings; risks
related to environmental regulation and liability; the potential
for delays in exploration or development activities or the
completion of feasibility studies; the uncertainty of
profitability; risks and uncertainties relating to the
interpretation of drill results, the geology, grade and continuity
of mineral deposits; risks related to the inherent uncertainty of
production and cost estimates and the potential for unexpected
costs and expenses; results of prefeasibility and feasibility
studies, and the possibility that future exploration, development
or mining results will not be consistent with the Company's
expectations; risks related to commodity price fluctuations; and
other risks and uncertainties related to the Company's prospects,
properties and business detailed elsewhere in the Company's
disclosure record. Should one or more of these risks and
uncertainties materialize, or should underlying assumptions prove
incorrect, actual results may vary materially from those described
in forward-looking statements. Investors are cautioned against
attributing undue certainty to forward-looking statements. These
forward-looking statements are made as of the date hereof and the
Company does not assume any obligation to update or revise them to
reflect new events or circumstances. Actual events or results could
differ materially from the Company's expectations or
projections.
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SOURCE South Star Battery Metals Corp.