South Star Battery Metals Announces Repricing of Non-Brokered Private Placement
South Star Battery Metals Announces Repricing of Non-Brokered Private
Placement
VANCOUVER, British Columbia, June 17, 2022 -- South Star Battery Metals Corp. (“South Star” or the “Company”) (TSXV:
STS) (OTCQB: STSBF), is announcing that it is repricing the previously announced (May 19, 2022) non-brokered private
placement of units (the “Private Placement” or the “Offering”) to raise approximately C$2,000,000 in order to better reflect the
current market conditions for common shares of the Company. On a pre-consolidation basis, the Offering will be repriced from
C$0.15 per unit (the “Units”) to C$0.11 per unit and consist of approximately 18,181,818 Units. Each Unit will consist of one
(1) common share and one (1) common share purchase warrant (the “Warrants”). Each Warrant will entitle the holder to
purchase one additional common share of the Company at an exercise price of C$0.25 per common share for a period of five
years from the date of issue.
All other terms and conditions of the Offering remain unchanged. The closing of the Offering is subject to customary
conditions, including the receipt of all necessary approvals, including the approval of the TSX Venture Exchange (the “TSXV”).
The Company may pay finders' fees under the offering in accordance with applicable securities laws and the policies of the
TSX Venture Exchange. The securities will be subject to a four-month hold period from the date of closing. The Private
Placement is subject to a 25% over-allotment option and to an acceleration clause. See below for further details.
Common Shares issued pursuant to the Private Placement will be issued on a post-Consolidation basis. The Warrants issued
in the Consolidation will be issued on a post-Consolidation basis, and upon the completion of the Consolidation will
automatically be adjusted to the post-Consolidation terms disclosed above (five pre-Consolidation Warrants will entitle the
holder to acquire one post-Consolidation Warrant at a price of $1.25).
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 a
pre-Consolidation basis 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 Q2 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 (Canada IR)
Email: [email protected]
RBMG – RB Milestone Group LLC (IR US)
Trevor Brucato, Managing Director
Email: [email protected]
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: 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.