South Star Battery Metals Corp. (TSX-V:STS, OTCQB:STSBF) revealed that it plans to complete a non-brokered private placement of units at a price of C$0.53 per unit to raise up to C$4 million.
The Vancouver, British Columbia-based battery metals project developer said it will funnel the funds from the private placement into exploration, development, and construction activities. It will also fund the company's operating expenses and general working capital requirements.
The private placement is expected to be fully subscribed, according to the South Star management.
Each unit will consist of one common share and one common share purchase warrant. Each warrant will entitle the holder to buy one additional common share 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, noted the company.
South Star said it may pay finders' fees to eligible finders. The securities issued after the private placement will be subject to a four-month hold period. In addition, 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, if, during any period of 10 consecutive trading days between the date that is four 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 any other exchange where the majority of the trading volume occurs) exceeds C$2.50 on each day, South Star may, within 30 days of such an occurrence, give written notice to the holders of the warrants that all unexercised warrants will expire at 4:00 pm Vancouver time on the 30th day after providing the notice.
On receiving the notice, the holders of the warrants will have 30 days to exercise their warrants. Any warrants that remain unexercised will expire, said the company.
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