South Star Battery Metals Corp. (TSXV: STS) (OTCQB: STSBF) (FRA: S9BN) is pleased to announce the successful closing of the first tranche of its oversubscribed non-brokered private placement. The company raised a total of $3 million through this offering, which will be used to advance the exploration and development of its flagship Brazil-based Santa Cruz Graphite Project.
The private placement consisted of the issuance of flow-through units (FT Units) and non-flow through units (NFT Units). Each FT Unit was priced at $0.25 and consisted of one common share and one-half of one common share purchase warrant, with each full warrant entitling the holder to acquire an additional common share at a price of $0.35 for a period of two years from the closing.
On the other hand, NFT Units were priced at $0.22 and included one common share and one-half of one common share purchase warrant, with each full warrant exercisable at a price of $0.30 for a period of two years from the closing.
South Star Battery Metals Corp. experienced overwhelming investor interest and had initially targeted an offering size of $1.5 million. However, due to high demand, management decided to increase the financing to accommodate additional investment.
Future tranches of the private placement are expected to close on or before June 25, 2021, subject to regulatory approval. The company plans to raise a total of $5 million, which will be utilized to fund the continued exploration work at the Santa Cruz Graphite Project and for general corporate purposes.
The Santa Cruz Graphite Project is strategically located in Bahia, Brazil, and consists of 13 highly prospective graphite and vanadium projects. The region has a long history of graphite production and is known to host high-quality flake graphite deposits. South Star’s project covers an extensive area of over 13,000 hectares, providing significant potential for resource expansion.
The latest financing will allow South Star Battery Metals Corp. to accelerate its exploration activities in the Santa Cruz Graphite Project. The company plans to carry out further drilling, geophysics, and metallurgical testing to advance the project towards the feasibility stage.
The growing demand for graphite, especially in the electric vehicle and energy storage sectors, makes South Star’s Santa Cruz Graphite Project a highly attractive investment opportunity. Graphite is a key component in lithium-ion batteries, which are essential for electric vehicles and various renewable energy storage solutions.
Moreover, South Star Battery Metals Corp. is committed to sustainable and responsible exploration practices. The company aims to minimize its environmental impact while maximizing the economic benefits for local communities.
In conclusion, the successful closing of the first tranche of South Star Battery Metals Corp.’s oversubscribed non-brokered private placement highlights the strong investor interest in the company’s flagship Santa Cruz Graphite Project. This financing will provide the necessary funds to further explore and develop the project, positioning South Star as a significant player in the graphite and battery metals sector. As the demand for graphite continues to grow, South Star is well-positioned to capitalize on this lucrative market.
