South Star Battery Metals Announces Unbrokered Private Placement, Stream Contract Amendment, Promissory Note Extension, The Canadian Business Journal

VANCOUVER, BRITISH COLUMBIA, October 5, 2022 (GLOBE NEWSWIRE) — South Star Battery Metals Corp. (“South Star” or the “Company”) (TSXV: STS) (OTCQB: STSBF) is a unit (“Unit”) ) at a price of C$0.53 per Unit, raising up to C$5,250,000. Management expects the private placement to be fully underwritten. The Company has also amended the terms of its previously announced (see press releases of April 5, 2022 and April 18, 2022) Stream Agreement (“Stream Agreement”) and Promissory Note (“Promissory Note”) Did. Royaly (B) Corp. (“Sprott”) for the Santa Cruz Graphite Project in Brazil. Canaccord Genuity Corp. acted as financial advisor to South Star in this placement.

private placement

Each unit consists of one share of our common stock and one common stock purchase warrant (“Warrant”). Each Warrant holder may purchase one additional share of the Company’s common stock at an exercise price of $1.25 CAD per share for five years from the date of issuance. Warrants are subject to acceleration clauses (explained in more detail below).

Closing of the Private Placement is subject to customary closing conditions, including without limitation receipt of all necessary approvals, including TSX Venture Exchange (“TSXV”) approvals. Proceeds from private placements are used for exploration, development and construction activities, corporate G&A and general working capital requirements. The proceeds from the private placement, when combined with the proceeds from the private placement closed on June 23, 2022, are expected to satisfy the precedent conditions of the Stream Agreement that the Company raises a minimum of C$6 million.

The Company may pay finder’s fees to eligible finder in accordance with applicable securities laws and TSXV policies. Securities issued under private placements are subject to a four month hold period. The Company may, at its sole discretion, exercise an over-allotment option that may increase the size of the Private Placement by up to 15%.

The Warrants Acceleration Clause provides that, during any of the 10 consecutive trading days from the date four months after the closing of the Private Placement to the expiry of the If the weighted average trading price of the Company’s common stock on any other exchange on which a portion occurs on a daily basis exceeds $2.50 CAD, the Company may, within 30 days of such occurrence, redeem all outstanding warrants for written notice to the holder of the Warrant that it will expire at 4:00 p.m. (Vancouver time) on the 30th day after such notice is issued. Upon receipt of such notice, the holder of this Warrant may exercise the Warrant within thirty (30) days, and any unexercised Warrant shall expire.

Stream contract amendments and promissory note extensions

We have entered into an agreement with Splott to amend the Stream Agreement (the “Amendment”). Pursuant to the amendments, Sprott has granted the company, among other things, a 60-day extension (until 14 December 2022) to meet the terms of the precedent Phase 1 of the Stream contract. The Company and Sprott have also amended the promissory note for Sprott to provide interest calculated at an interest rate based on his December 14, 2022 maturity date and principal amount beginning October 4, 2022. made an advance payment of US$2 million to Calculated at 1% per month, compounded monthly.

About South Star Battery Metals Corporation

South Star Battery Metals Corp. is a Canadian battery metals project developer focused on the selective acquisition and development of short-term production projects in the Americas. South Star’s Santa Cruz graphite project in the southern state of Bahia, Brazil, is the first in a series of industrial and battery metals projects to go into production. Brazil is the world’s second largest graphite producer and has been mined for over 80 years. There is mineralization on the surface of the friable material at Santa Cruz and a large pilot his plant trial (>30t) has been successfully completed. The results of the test show that about 65% of the Cg concentrate is +80 mesh with good recovery and 95%-99% of his Cg. Equipped with superior infrastructure and logistics, South Star is on track to develop plans for Phase 1 production, scheduled for Q4 2023.

The next project in South Star’s development pipeline is in Alabama, located in the middle of a developing electric vehicle, aerospace and defense hub in the southeastern United States. This project is a historic mine that was active during World War I and II. Trenching, sampling, analysis and preliminary metallurgical testing have been completed. Tests have shown that a conventional crushing/grinding/flotation thickening circuit achieves a grade of about 96-97% with a recovery rate of about 86%. South Star is executing plans to create a multi-asset, diversified battery metals company with short-term operations in strategic jurisdictions. South Star trades on TSX Venture Exchange under symbol STS and on OTCQB under symbol STSBF.

South Star is committed to a corporate culture, project execution plans and safe operations that embrace the highest standards of ESG principles based on transparency, stakeholder engagement, continuing education and stewardship. For more information, please visit the company website http://www.southstarbatterymetals.com..

This press release has been reviewed and approved by Richard Pearce, PE, President and CEO of South Star Battery Metals Corp, “Qualified Person” under National Instrument 43-101.

On behalf of the Council,

Mr Richard Pearce
Chief executive officer

For more information, please contact:

South Star Investor Relations (Canada IR)

RBMG – RB Milestone Group LLC (IR US)
Trevor Burkato, 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

Notes

Neither TSX Venture Exchange nor its regulated service providers (as those terms are defined in the TSX Venture Exchange Policy) are responsible 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 laws. Forward-looking statements relate to information based on management’s assumptions, projections of future results and estimates of amounts that cannot yet be determined. Statements that represent projections, expectations, beliefs, plans, projections, objectives, assumptions, or future events or performance may be “forward-looking statements” and not statements of historical fact. Forward-looking statements in this press release include, but are not limited to, statements regarding the following: The Stream Agreement, including the satisfaction of the terms that preceded the Stream Agreement; transitioning the Santa Cruz Project to production and scaling operations and moving the Alabama Project forward. Company plans and expectations.

Forward-looking statements are subject to various risks and uncertainties that may cause actual events or results to differ from those reflected in the forward-looking statements. on acceptable terms; risks associated with the consequences of legal proceedings; Political and regulatory risks associated with mining and exploration. Risks associated with maintaining a stock exchange listing. Risks related to environmental regulation and liability. potential delays in completing exploration or development activities or feasibility studies; uncertainties in profitability; risks and uncertainties regarding interpretation of drilling results, geology, deposit grade and continuity; the uncertainties inherent in production and cost estimates and the risks associated with the possibility of unexpected costs and expenses; the results of pre-feasibility and feasibility studies and the results of future exploration, development or mining may not meet our expectations; Risk associated with fluctuations in commodity prices. and other risks and uncertainties relating to our prospects, assets and business that are detailed elsewhere in our disclosure records. If one or more of these risks and uncertainties materializes, or if the underlying assumptions prove incorrect, actual results may differ materially from those set forth in the forward-looking statements. There is a possibility. Investors are cautioned against ascribed undue certainty to forward-looking statements. These forward-looking statements are made as of the date hereof and we undertake no obligation to update or revise them to reflect new events or circumstances. Actual events or results may differ materially from our expectations and projections.

CBJ Newsmaker