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South Star Battery Metals Corp
Symbol STS
Shares Issued 77,419,021
Close 2021-10-18 C$ 0.13
Recent Sedar Documents

South Star Battery to increase financing to $2.3M

2021-10-18 15:43 ET - News Release

Mr. Richard Pearce reports

SOUTH STAR BATTERY METALS ANNOUNCES INCREASE IN NON-BROKERED PRIVATE PLACEMENT

South Star Battery Metals Corp. intends to increase the non-brokered private placement of units previously announced on Oct. 15, 2021, to raise approximately $2.3-million. The increased offering is to accommodate an additional institutional investor. The closing of the offering is subject to customary conditions, including the receipt of all necessary approvals, including the approval of the TSX Venture Exchange.

The increased private placement will consist of 20,909,091 units priced at 11 cents per unit. Each unit will consist of one common share and one common share purchase warrant. Each warrant will entitle the holder to purchase one additional common share of the company at an exercise price of 15 cents per common share for a period of three years from the date of issue. The securities will be subject to a four-month hold period from the date of closing and approval by the TSX-V. The private placement is subject to a 15-per-cent overallotment option and to an acceleration clause. See below for further details. In connection with the private placement, the company may pay finders' fees or brokers' warrants to eligible third parties in consideration for the introduction of subscribers.

Net proceeds from the private placement will be used for advanced materials sample preparation, commercial agreements, project finance and general working capital requirements for the company.

Acceleration clause

If during a 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 TSX-V (or such other stock exchange where the majority of the trading volume occurs) exceeds 50 cents on each of those 10 consecutive days, the company may, within 30 days of such an occurrence, give written notice to the holders of the warrants that the warrants will expire at 4 p.m. Vancouver time on the 30th day following the giving of notice unless exercised by the holders prior to such date. Upon receipt of such notice, the holders of the warrants will have 30 days to exercise their warrants. Any warrants which remain unexercised at 4 p.m. Vancouver time on the 30th day following the giving of such notice will expire at that time.

About South Star Battery Metals Corp.

South Star Battery Metals is a Canadian battery metal 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 metal projects that will be put into production. Brazil is the second-largest graphite-producing region in the world with more than 80 years of continuous mining. Santa Cruz has at-surface mineralization in friable materials and successful, large-scale pilot plant testing (over 30 tonnes) has been completed. The results of the testing show that approximately 65 per cent of carbon graphite (Cg) concentrate is 80-plus mesh with good recoveries and 95 to 99 per cent Cg. With excellent infrastructure and logistics, South Star is carrying its development plan toward phase 1 production projected in Q4 2022, pending financing.

This news release has been reviewed and approved by Richard Pearce, PE, a qualified person under National Instrument 43-101 and president and chief executive officer of South Star Battery Metals.

An anonymous director reports

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