South Star Battery Metals Expands Funding with New Placement

South Star Battery Metals Initiates Non-Brokered Private Placement

South Star Battery Metals Corp. (“South Star” or the “Company”) (TSXV: STS, OTCQB: STSBF) has taken a significant step by announcing a non-brokered private placement that aims to raise up to US$2,000,000. This funding opportunity includes the issuance of up to 9,090,909 units at a price of US$0.22 (C$0.3019) per unit.

Each unit will comprise a common share and a warrant. The warrants entitle the holder to acquire one common share at an exercise price of US$0.33 (C$0.4529) over a five-year period after issuance. This strategic move is designed to support various aspects of the company’s operations, including exploration and general working capital needs.

Details of the Private Placement

The closing of this private placement is contingent upon meeting customary conditions, particularly the approval from the TSX Venture Exchange (TSXV). Along with the potential for insiders to participate, this private placement offers flexibility with over-allotment options, allowing the size of the offering to increase by up to 15%. Additionally, finders' fees may be applicable as per the relevant regulations and exchanges.

Funding Utilization and Future Prospects

Proceeds from this private placement will be allocated for exploration efforts, corporate general and administrative expenses, and other essential working capital needs. With the completion of this funding, South Star aims to enhance the commercial viability of its projects, particularly the Santa Cruz Graphite Project, which is pivotal for the company’s growth trajectory.

About South Star Battery Metals

South Star is on a trajectory toward becoming a prominent player in the battery metals space, primarily focused on strategically located projects in the Americas. The Santa Cruz Graphite Project, situated in Brazil, stands as the initial venture aimed at commercial production, boasting a capacity of 12,000 tons annually. This project holds substantial significance as it marks the first new graphite production in the Americas since 1996, showcasing the company's dedication to revitalizing this vital sector.

Strategic Locations and Development Plans

Looking forward, South Star is also advancing its second project in Alabama, strategically positioned in a burgeoning hub for electric vehicles and aerospace. This development aligns with the expanding demand for battery materials and positions the company favorably within the industry. Planned analyses and assessments will pave the way for further progress in the upcoming phases of both projects.

Commitment to ESG Principles

South Star remains committed to maintaining exemplary corporate practices and upholding high standards of environmental, social, and governance (ESG) principles. The company values transparency, stakeholder engagement, and ongoing education, ensuring its operations are ethically sound and sustainable.

Frequently Asked Questions

What is the purpose of the private placement announced by South Star Battery Metals?

The private placement aims to raise funds for exploration, corporate general administrative expenses, and general working capital requirements.

How many units does the private placement include?

The private placement includes up to 9,090,909 units priced at US$0.22 each.

What is the expected launch date for the Santa Cruz Graphite Project's commercial production?

The Santa Cruz Graphite Project is expected to ramp up commercial production with first sales anticipated in October 2024.

Where is South Star's second project located?

The second project, known as the BamaStar Project, is located in Alabama, U.S.A., targeted at the electric vehicle and aerospace sectors.

What is South Star Battery Metals' approach to ESG?

South Star is committed to high standards of ESG principles, focusing on transparency, stakeholder engagement, and sustainable operational practices.

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