South Star Announces Indicative Term Sheet for US$4M Debt Financing for the Santa Cruz Graphite Mine in Brazil and Appointment of New CFO

Core Viewpoint - South Star Battery Metals Corp has signed a non-binding indicative term sheet for a US$4,000,000 loan facility with Sprott Streaming to support the development of the Phase 1 Santa Cruz Graphite Mine in Brazil [1][6]. Loan Details - The loan has a maturity of 3 years, with the initial tranche of US$200,000 contingent on US$2,000,000 equity or subordinated debt financing [1][4]. - The loan proceeds will be exclusively used for equipment adjustments, working capital, and process optimization at the Santa Cruz Graphite Mine, aiming for a production ramp-up from 450 tonnes per month to 1,000 tonnes per month [2][6]. - The loan will have an interest rate of 12% per annum for the first 24 months, increasing to 18% for the final 12 months, with a 12-month grace period [4]. Management Commentary - The CEO of South Star expressed satisfaction with the financing partnership with Sprott Streaming, highlighting the importance of this facility for advancing the Santa Cruz Graphite Mine and enhancing the company's position as a critical materials supplier for the energy transition [3][6]. Financial and Operational Strategy - A detailed development plan has been prepared to improve operational performance and ensure consistent product quality at Santa Cruz [2]. - The loan will enhance operational robustness and provide financial flexibility for executing the development plan [2]. Leadership Changes - Mr. Darren Prins has been appointed as the new Chief Financial Officer, bringing over 20 years of experience in finance and accounting [5][7]. - The CEO welcomed Mr. Prins to the team, emphasizing the value of his extensive experience in senior finance roles [8]. Company Overview - South Star is focused on developing battery-metals projects in the Americas, with the Santa Cruz Graphite Project being the first of its kind in the region since 1996 [9]. - The company is also advancing the BamaStar Project in Alabama, which has shown strong economic results in preliminary assessments [10]. ESG Commitment - South Star is committed to high standards of ESG principles, emphasizing transparency, stakeholder engagement, and stewardship in its operations [11].