VANCOUVER, BC, Jan. 10,
2023 /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 total
proceeds of C$230,166. This Offering
is related to the Company's previous private placement completed in
November 2022 (See press release
dated Nov. 16, 2022), but funds were
received in January of 2023. Net proceeds from the Private
Placement will be used for exploration, development, Phase 1
construction activities, corporate G&A and general working
capital requirements. Phase 1 commercial production is planned for
Q4 2023.
Richard Pearce, CEO of South
Star, said, "We have successfully partnered with strong, long-term
institutional investors familiar with Brazil, mineral resources and battery metals
sector. Funding with Sprott for Phase 1 construction has been
released, and Phase 1 construction is well underway. The owner's
team is mobilized for construction, and the majority of the major
equipment contracts have been signed and down-payments made to lock
in our equipment CAPEX. 2023 will be a watershed year for South
Star as we transition Santa Cruz
from a development project into a producing mine. We look forward
to 2023 production of high-quality graphite concentrates and
cashflows at a time when critical metals supply is in a global
deficit and key markets are reorganizing their supply chain as the
world transitions through the green energy revolution. Our
Santa Cruz Mine in Brazil and Alabama Project in US will be an
important part of the global solution to quickly bringing critical
metals to market in stable, safe jurisdictions. South Star has
great assets in key jurisdictions, an experienced team in place
with a track record of delivering long-term, disciplined value, and
near-term production beginning at the right time in the market
cycle. We will deliver on our promise and commitment to be the
first new graphite production since 1996."
The Private Placement consists of 434,277 units priced at
C$0.53 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$1.25 per common
share for a period of five years from the date of issue, subject to
acceleration as set out below. The securities issued in this
Private Placement will be subject to a four-month hold period from
the date of closing and approval by the TSXV, expiring May 10, 2023. In connection with the Private
Placement, the Company issued an aggregate amount of 8,685 brokers'
warrants in connection with the Private Placement and paid
$13,810 in cash finders' fees to
certain finders. Each finders warrant entitles the holder to
acquire one common share of the Company at a price of $0.53 for a period of 5 years from the date of
issuance, subject to acceleration as set out below.
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$2.50
for 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
2023.
South Star's next project in the development pipeline is a
project in Alabama located in the
middle of a developing electric vehicle, aerospace and defence hub
in the southeastern United States. The Project is a historic
mine active during World Wars I & II. Trenching,
sampling, analysis and preliminary metallurgic testing has been
completed. The testing indicated a traditional
crush/grind/flotation concentration circuit achieved grades of
approximately 96-97% with approximately 86% recoveries. South Star
is executing on its plan to create a multi-asset, diversified
battery metals company with near-term operations in strategic
jurisdictions. South Star trades on the TSX Venture Exchange
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
For additional information, please
contact:
South Star Investor Relations
Email: invest@southstarbatterymetals.com
+1 (604) 706-0212
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
This press release 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 in this press release
include, but are not limited to, statements regarding: moving
Santa Cruz into production and
scaling operations as well as advancing the Alabama project; and the
Company's plans and expectations.
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: closing of the second trance of the
financing and the Sprott Agreement, TSXV acceptance of the PIF,
final TSXV approval of the financing, 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.