South Star Announces Closing of First Tranche of Private Placement, Extension and US$450,000 of Bridge Loans

Core Viewpoint - South Star Battery Metals Corp has successfully completed an initial tranche of a non-brokered private placement, raising gross proceeds of US$302,610 (CA$415,263.45) for development, production, and working capital needs [1][2]. Private Placement Details - The first tranche consists of 1,375,500 Units, each comprising a common share priced at US$0.22 (CA$0.3019) and a common share purchase warrant [2]. - Each warrant is exercisable into one common share at the same price for five years from the date of issue, and the Units are subject to a four-month hold period [2]. - The closing of the Private Placement is contingent upon customary conditions, including TSX Venture Exchange approval [2]. Insider Participation - An insider participated in the Private Placement, acquiring 1,000,000 Units for a total of US$220,000, which is classified as a related party transaction [4]. - The company is relying on exemptions from formal valuation and minority shareholder approval requirements under MI 61-101, as the transaction does not exceed 25% of the company's market capitalization [4]. Bridge Loans - South Star has secured bridge loans totaling US$450,000 to provide short-term funding while pursuing the closing of the subsequent tranche of the private placement [5]. - The bridge loans are evidenced by unsecured promissory notes with a 1% monthly interest rate, maturing on January 7, 2026, unless repaid earlier [6]. - The proceeds from the bridge loans will be used for general working capital purposes [7]. Related Party Transactions - US$450,000 of the bridge funding was provided by directors and officers of the company, also constituting a related party transaction [8]. - The company is relying on exemptions from formal valuation and minority shareholder approval requirements for this transaction as well [8]. Company Overview - South Star Battery Metals Corp is focused on developing battery-metals projects in the Americas, with its Santa Cruz Graphite Project in Brazil being the first to enter production [11]. - The Santa Cruz project has shown promising results, with a significant portion of graphite concentrate being of high quality [11]. - The company is also developing the BamaStar Project in Alabama, which has demonstrated strong economic results in preliminary assessments [12].