South Star Mining Provides Update on Santa Cruz Graphite Project, Development Bank Debt Document Submittal and Granting of Stock Options
South Star Mining Provides Update on Santa Cruz Graphite Project, Development
Bank Debt Document Submittal and Granting of Stock Options
Toronto, ON, August 4, 2020 – South Star Mining Corp. (‘South Star’ or ‘the Company’) (TSX-V: S T S ) ( O T C :
STSBF) is pleased to announce the issuing of incentive options for 2020 and provide a general project update
for the Santa Cruz Graphite Project (‘Project’) in Bahia, Brazi l. Over the past 12 months, the Company has
significantly advanced the Project towards production in 2021. Key accomplishments include:
9 July 2019: Updating the resource estimate;
9 January 2020: Submitting the required documentation for the trial mining license;
9 February 2020: Issuing the maiden reserve estimate and a positive PFS for the Project;
9 February 2020: Finalizing the pilot plant flow sheet incorporat ing filtered tailings and detailed
engineering for 5,000 tpy production plant;
9 March 2020: Securing the approval of the environmental license for construction and operations of the
pilot plant production facility (Phase 1 of operations); &
9 May 2020: Closing a non-brokered private placement.
The Company is in continual contact with the regulatory agency to support the trial mining license approval
process, which is expected to be issued in August of 2020.
The recently completed financing provides sufficient funds for 2020 operations.
DEVELOPMENT BANK DEBT DOCUMENT SUBMITTAL
The Company has also submitted the required documentation to th e Brazilian development bank (‘Banco do
Nordeste’ or “Banco”) responsible for the Project region and re quested approximately US$7.5M in loans for
equipment purchase and pilot plant construction. Two lines of credit have been discussed, and all indications
are that the Project documentation will be submitted to the cre dit committee in August of 2020 for review and
evaluation. The typical process provided by the Banco requires 2-3 months for review of Project information
and issuing the terms and conditions, if approved.
South Star CEO Richard Pearce commented: “We continue to make significant strides towards 20 21
production. We have shipped concentrate and purified samples to potential clients and received positive
feedback on the product. The Company is grateful for the contin ued support from our shareholders and
insiders that have been steadfas t in their ongoing commitment t o advancing the Project, even in the difficult
times of a global pandemic.”
STOCK OPTION GRANT
The board of directors of the Co mpany has authorized the grant o f 2 , 6 6 0 , 0 0 0 i n c e n t i v e s t o c k o p t i o n s t o
directors, officers, employees and key consultants at an exerci se price of C$0.055 per common share and
exercisable for a five-year period, subject to regulatory appro val. The shares issuable upon exercise shall be
subject to a four-month hold period from the date of the grant of the options.
The Options are granted pursuant to the Company’s stock option plan, which was approved by shareholders at
the Company’s 2019 annual general meeting.
About South Star Mining Corp.
South Star Mining Corp. is focused on the selective acquisition and development of near-term mine production
projects in Brazil to maximize shareholder value. STS has an ex perienced executive team with a strong history
of discovering, developing, building and operating profitable mines in Brazil.
The Santa Cruz Graphite Project is located in Southern Bahia in the third largest graphite producing region in
the world with over 70 years of continuous mining. The Project has at surface mineralization in friable
materials, and successful large-scale pilot plant testing (>30t ) has been completed. The results of the testing
show 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 production projected at the end
of 2021.
To learn more, please visit the Company website at http://www.southstarmining.ca.
On behalf of the Board,
Mr. Richard Pearce
Chief Executive Officer
For additional information, please contact:
CHF Capital Markets
Cathy Hume, CEO
Phone: 416-868-1079 x231
Email: [email protected]
Mr. Dave McMillan
Chairman
Email: [email protected]
CAUTIONARY STATEMENT
Neither the TSX Venture Exchange nor its Regulation Services Pr ovider (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 stat ements" within the meaning of applicable securities
legislation. Forward-looking statements relate to information t hat 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 an d 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 obta in
adequate financing on a timely basis and on acceptable terms; r isks related to the outcome of legal proceedings; political
and regulatory risks associated with mining and exploration; ri sks related to the maintenance of stock exchange listings;
risks related to environmental regulation and liability; the po tential for delays in exploration or development activities or
the completion of feasibility studies; the uncertainty of profi tability; risks and uncertainties relating to the interpretatio n of
drill results, the geology, grade and continuity of mineral dep osits; risks related to the inherent uncertainty of production
and cost estimates and the potential for unexpected costs and e xpenses; results of prefeasibility and feasibility studies, and
the possibility that future explor ation, development or mining results will not be consis tent with the Company's
expectations; risks related to gold price and other commodity price fluctuations; and other risks and uncertainties related to
the Company's prospects, properties and business detailed elsew here in the Company's disclosure record. Should one or
more of these risks and uncertainties materialize, or should un derlying 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 n ew events or circumstances. Actual events or results could
differ materially from the Company's expectations or projections.