South Star Battery Metals Announces Closing of Final Tranche of Upsized Private Placement Raising Gross Proceeds of US$3M
South Star Battery Metals Announces Closing of Final Tranche of Upsized
Private Placement Raising Gross Proceeds of US$3M
THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES FOR DISSEMINATION IN THE UNITED STATES
Vancouver, Canada, January 8, 2025 – South Star Battery Metals Corp. (“South Star” or the “Company”) (TSXV:
STS) (OTCQB: STSBF), is pleased to announce that it that it has successfully completed the closing of the third and
final tranche of its upsized , non-brokered private placement (the “ Private Placement ”) of Units for gross
proceeds to the Company of US$879,449.45 (CA$1,231,229.06). When combined with Tranche 1 and Tranche 2,
the gross proceeds of the Private Placement to the Company total US$3,000,000 (CA$4,200,000). Funds from the
Private Placement will be used for exploration, development, production activities, as well as corporate G&A and
general working capital requirements.
Tranche 3 of the Private Placement consists of the issuance of 2,045,231 Units (the “Units”). Each Unit consists
of one common share (a “Share”) priced at US$0.43 (CA$0.602) and one common share purchase warrant (a
“Warrant”). Each Warrant is exercisable into one Share at a price of US$0.89 (CA$1.246) for five years from the
date of issue and is subject to an acceleration clause as detailed below.
Final closing of the Private Placement is subject to customary closing conditions, including, but not limited to, the
receipt of all necessary approvals, including the approval of the TSX Venture Exchange. In connection with the
third tranche closing of the Private Placement, the Company paid finder’s fees of US$40,000 (CA$56,000) and
issued 55,813 common shares (the “ Finders Shares”) to A8 Capital Advisors Latam Ltd . The Units and Finder’s
Shares issued pursuant to the Private Placement will be subject to a four-month hold period.
Insiders of the Company participated in Tranche 3 of the Private Placement for an aggregate amount of
US$29,440.45 (CA$41,216.53) for 68,466 Units. Insider participation for the Private Placement to taled
US$936,798.50 (CA$1,311,517.90) for 2,178,601 Units. The transaction with the director, officers and insiders
constitutes a “related party transaction” as defined under Multilateral Instrument 61-101 Protection of Minority
Security Holders in Special Transactions (“MI 61-101”). The Company is relying on the exemptions under section
5.5(a) and section 5.7(1)(a) from the formal valuation and minority shareholder approval requirements of MI 61-
101, as the fair market value of the Units issued to the related parties and the consideration paid by the related
parties under the Private Placement does not exceed 25% of Company’s market capitalization, as determined in
accordance with MI 61 -101. The Company did not file a material change report in respect of the related party
transaction at least 21 days before the closing of the Private Placement, as the details of the participation by
related parties of the Company were not settled until shortly prior to closing of the Private Placement.
Acceleration Clause
The acceleration clause of the Warrants will provide that, if, during any period of ten (10) 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 TSX
Venture Exchange (or such other stock exchange where the majority of the trading volume occurs) is equal to or
exceeds US$1.79 (CA$2.506) on each day, the Company may, within thirty (30) days of such an occurrence, give
notice, via news release, to the holders of the Warrants that all unexercised Warrants will expire at 4:00 p.m.
(Vancouver time) on the 30th day following the giving of such notice. Upon receipt of such notice, the holders of
the Warrants will have thirty (30) days to exercise their Warrants and any Warrants that remain unexercised will
expire.
# # #
ABOUT SOUTH STAR BATTERY METALS CORP.
South Star 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 (> 30 tonnes)
has been completed. The results of the testing show that approximately 65% of graphite concentrate is +80 mesh
with good recoveries and 95%-99% graphitic carbon (Cg). With excellent infrastructure and logistics, South Star
Phase 1 is ramping up commercial production with first shipments completed in October 2024. Santa Cruz Phase
1 commercial production has a nameplate capacity of 12,000 tpy and is the first new graphite production in the
Americas since 1996. Phase 2 production (25,000 t py) is partially funded and planned for 2026, while Phase 3
(50,000 tpy) is scheduled for 2028.
South Star’s second project in the development pipeline is strategically located in Alabama , U.S.A. in the center
of a developing electric -vehicle, aerospace, and defense hub in the southeastern United States. The BamaStar
Project includes a historic mine active during the First and Second World Wars. A NI 43-101 Preliminary Economic
Assessment was filed on SEDAR+ in November 2024 . Trenching, Phase 1 drilling, sampling, analysis, and
preliminary metallurgical testing have been completed. The testing included a traditional crush/grind/flotation
concentration circuit that achieved grades of approximately 94-99% Cg with approximately 90% recoveries. The
vertically integrated production facilities include a mine and industrial concentrator in Coosa County, AL and a
downstream value-add plant in Mobile, AL, which will be upgrading natural flake graphite concentrates from both
Santa Cruz and BamaStar min es. 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 for South Star 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 South Star Board of Directors,
MR. RICHARD L. PEARCE,
President & Chief Executive Officer
For additional information, please contact:
South Star Investor Relations
Email: [email protected]
Phone: +1 (604) 706-0212
Website: www.southstarbatterymetals.com
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 p redictions,
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 the Private Placement, including the closing date, the
use of proceeds and potential acceleration of Warrants and Finder’s Warrants, production at Santa Cruz, 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: 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 det ailed 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.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the
United States. The securities have not been and will not be registered under the United States Securities Act of
1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within
the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities
laws or an exemption from such registration is available.