South Star (TSX.V: STS) (OTCQB: STSBF) has announced its entry into a binding streaming agreement with Sprott Resource Streaming and Royalty Corp (“SRSR”) for a total cash consideration of up to US$28 million as prepayment for graphite concentrates from the Santa Cruz Graphite Project in Brazil. According to the announcement, South Star will act as sales agent for SRSR on the percentage of production subject to the agreement. “We are delighted to have a long-term strategic partner like Sprott,” Richard Pearce, CEO of South Star, said in the press release. “This financing delivers excellent value for South Star shareholders by minimizing equity dilution while giving the company a lot of financial flexibility to fund future expansions. This agreement is the next cornerstone in building South Star into a world class graphite producer and will provide full funding for South Star to move construction forward on the Santa Cruz Phase 1 operations and partial funding for Phase 2 CAPEX at a very attractive cost of capital compared to available commercial alternatives or additional equity dilution.”
To view the full press release, visit https://ibn.fm/66YVU
About South Star Battery Metals Corp.
South Star 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. 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 (>30t) has been completed. The results of the testing show that approximately 65% of Cg concentrate is +80 mesh with good recoveries and 95%-99% Cg. With excellent infrastructure and logistics, South Star is carrying its development plan towards phase 1 production projected in Q2 2023. South Star’s next project in the pipeline is a development project in Alabama located in the middle of a developing electric vehicle, aerospace and defense hub in the southeastern United States. The project is a historic mine active during World Wars I & II. Trenching, sampling, analysis and preliminary metallurgic testing has been completed. The testing indicated a traditional crush/grind/flotation concentration circuit achieved grades of approximately 96-97% with approximately 86% recoveries. South Star is executing on its plan to create a multi-asset, diversified battery metals company with near-term operations in strategic jurisdictions. South Star trades on the TSX Venture Exchange under the symbol STS and on the OTCQB under the symbol STSBF. South Star is committed to a corporate culture, project execution plan and safe operations that embrace the highest standards of ESG principles based on transparency, stakeholder engagement, ongoing education and stewardship. To learn more about the company, please visit www.SouthStarBatteryMetals.com.
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