South Star Battery Metals Corp. (TSX-V:STS, OTCQB:STSBF) said it has completed a non-brokered private placement of units for total proceeds of just over C$230,000 to support Phase 1 construction at its Santa Cruz graphite project.
In a statement, CEO Richard Pearce noted that the firm had partnered with “strong, long-term” institutional investors familiar with Brazil, mineral resources and the battery metals sector.
“Funding with Sprott for Phase 1 construction has been released, and Phase 1 construction is well underway. The owner's team is mobilized for construction, and the majority of the major equipment contracts have been signed and down-payments made to lock in our equipment CAPEX,” the CEO said.
READ: South Star Battery Metals says on track to complete construction and commissioning at Santa Cruz graphite mine by December 2023
Pearce told investors that 2023 will be a “watershed year” for South Star as it transitions Santa Cruz from a development project into a producing mine.
“We look forward to 2023 production of high-quality graphite concentrates and cashflows at a time when critical metals supply is in a global deficit and key markets are reorganizing their supply chain as the world transitions through the green energy revolution," he added.
Located in Brazil, Santa Cruz is positioned to become an important part of the global solution to quickly bringing critical metals to market in stable, safe jurisdictions.
“South Star has great assets in key jurisdictions, an experienced team in place with a track record of delivering long-term, disciplined value, and near-term production beginning at the right time in the market cycle,” Pearce concluded. “We will deliver on our promise and commitment to be the first new graphite production since 1996."
The private placement consists of 434,277 units priced at C$0.53 per unit, with each unit consisting of one share and one share purchase warrant. Each warrant entitles the holder to purchase one additional common share of the company at an exercise price of C$1.25 per common share for a period of five years from the date of issue, subject to acceleration
The offering is related to South Star’s previous private placement completed in November 2022, but funds were received in January of this year.
Net proceeds from the private placement will be used for exploration, development, Phase 1 construction activities, corporate G&A and general working capital requirements. Phase 1 commercial production is planned for the fourth quarter of 2023.
Contact Angela at angela@proactiveinvestors.com
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