South Star Battery Metals Corp. (TSX-V:STS, OTCQB:STSBF) said it has completed the second tranche of its previously announced non-brokered private placement of units, raising total proceeds of $2,326,700.
The entire second tranche of the offering was with global institutional investors familiar with the battery metals and mining sectors and net proceeds will be used for exploration, development, construction activities, corporate general and administrative, and general working capital requirements, the company said.
“We have successfully partnered with strong, long-term institutional investors familiar with Brazil, mineral resources and battery metals sector,” Richard Pearce, chief executive officer of South Star said in a statement.
READ: South Star Battery Metals submits final mining license application for its Santa Cruz Graphite project in Brazil
With the closing of the second tranche of the financing, the company should meet all the conditions precedent to the phase 1 closing under the Sprott Private Resource streaming and Royalty Corp. streaming agreement.
"We should close the Sprott agreement in short order and will be fully funded for phase 1 capex. The owner's team is in place for construction, and we have started signing contracts as well as making down payments on critical path major equipment. Earthworks and civil infrastructure contractors are signed with mobilization planned in early December 2022. All the other contractors for phase 1 have been prequalified, and we are finalizing the negotiations for the balance of the contracts,” Pearce said.
“We will deliver on our promise and commitment to be the first new graphite production since 1996. Our team is looking forward to putting shovels in the ground and moving the project off the paper and into reality. Having started investing in Santa Cruz in 2010, we are very excited to have near-term production and cash flows on the horizon."
The second tranche of the private placement consists of 4.39 million units priced at 53 cents each. Each unit consists of one common share and one common share purchase warrant and each warrant entitles the holder to purchase one additional common share of the company at $1.25 per common share for a period of five years from the date of issue.
South Star Battery Metals 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.
Contact the author at jon.hopkins@proactiveinvestors.com