South Star Battery Metals Closes Non-Brokered Private Placement

Rhea-AI Summary

South Star Battery Metals Corp. has successfully completed a non-brokered private placement, raising proceeds of C$2,427,700 from the issuance of 22,069,999 units at C$0.11 per unit. Key institutional investors participated in the offering. The funds will support advanced materials sample preparation, commercial agreements, and general working capital. Each unit includes a common share and a warrant exercisable at C$0.15 for three years. The company anticipates Phase 1 production at its Santa Cruz Graphite Project in Brazil in Q4 2022.

Positive

• Raised C$2,427,700 in non-brokered private placement.
• Participation from key institutional investors enhances credibility.
• Funds allocated for advanced materials and commercial agreements.
• Anticipation of Phase 1 production at Santa Cruz Graphite Project in Brazil in Q4 2022.

Negative

• None.

VANCOUVER,  BC, Oct. 25, 2021 /PRNewswire/ - 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.

FAQ

What was the total amount raised in the South Star Battery Metals private placement?

South Star Battery Metals raised a total of C$2,427,700 in the private placement.

What is the exercise price of the warrants issued in the private placement?

The warrants issued in the private placement can be exercised at an exercise price of C$0.15 per common share.

When is South Star Battery Metals expected to begin production at the Santa Cruz Graphite Project?

South Star Battery Metals expects to begin Phase 1 production at the Santa Cruz Graphite Project in Q4 2022.

How many units were sold in the private placement by South Star Battery Metals?

A total of 22,069,999 units were sold in the private placement.

What are the intended uses of the proceeds from the private placement?

The proceeds will be used for advanced materials sample preparation, commercial agreements, project finance, and general working capital.