South Star Battery Metals Announces Non-Brokered Private Placement
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NEWS RELEASE
South Star Battery Metals Announces Non-Brokered Private Placement
Vancouver, Canada, July 05, 2023 – South Star Battery Metals Corp. (“South Star” or the “Company”) (TSXV: STS)
(OTCQB: STSB D), is pleased to announce that it intends to complete a non -brokered private placement (the
“Private Placement”) of units (the “Units”) at a price of C$0.53 per Unit to raise up to C$4,000,000. Management
expects the private placement to be fully subscribed.
Private Placement
Each Unit will consist of one (1) common share of the Company and one (1) common share purchase warrant
(“Warrant”). Each Warrant will entitle the holder to purchase one (1) additional common share of the Company
at an exercise price of C$ 1.25 per share for a period of five years from the date of issue . The Warrants will be
subject to an acceleration clause (described in more detail below).
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 T SX Venture Exchange (the “ TSXV”). Proceeds
from the Private Placement will be used for exploration, development, construction activities, corporate G&A
and general working capital requirements.
The Company may pay finders' fees to eligible finders, in accordance with applicable securities laws and the
policies of the TSXV. The securities issued pursuant to the Private Placement will be subject to a four-month hold
period. The Company may, in its sole discretion, exercise an over -allotment option pursuant to which it may
increase the size of the Private Placement by up to 15%.
The acceleration clause of the Warrants will provide that, i f, 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
TSXV (or such other stock exchange where the majority of the trading volume occurs) exceeds C$2.50 on each
day, the Company may, within thirty (30) days of such an occurrence, give written notice 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 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. Sa nta 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 fully funded for Phase 1, and the 12 -month construction and commissioning are underway. Santa Cruz
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will be the first new graphite production in the Americas since 1996 with Phase 1 commercial production
projected in Q 4 2023. Phase 2 production (25,000tpy) is partially funded and planned for 2026, while Phase 3
(50,000tpy) is scheduled for 2028.
South Star’s second project in the development pipeline is strategically located in Alabama in the center of a
developing electric vehicle, aerospace and defense hub in the southeastern United States. The BamaStar Project
is a historic mine active during World Wars I & II. Trenching, phase 1 drilling, sampling, analysis, and preliminary
metallurgical testing have been completed. The testing indicates a traditional crush/grind/flotation concentration
circuit that achieved grades of approximately 9 4-97% Cg 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: [email protected]
+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 amoun ts not yet determinable. Any statements that express predictions,
expectations, beliefs, plans, projections, objectives, assumptions or future events or performance are not
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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: 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 regul ation 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.