South Star Announces Non-Brokered Private Placements

Core Viewpoint - South Star Battery Metals Corp. is conducting a non-brokered private placement to raise up to C$4.17 million (US$3.0 million) through units and C$2.085 million (US$1.5 million) through unsecured convertible notes, aimed at funding exploration, development, and general working capital [1][7]. Unit Offering - The Company plans to issue up to 27,800,000 Units at a price of C$0.15 per Unit, each consisting of one common share and one common share purchase warrant [2]. - Each Warrant allows the holder to acquire one Share at C$0.20 for five years, with potential acceleration if the share price exceeds C$0.40 for ten consecutive trading days [2]. Note Offering - Tiago Cunha, interim CEO, and affiliates will subscribe for C$2.085 million (US$1.5 million) principal amount of Notes, which will convert into units at C$0.15 per Note Unit upon shareholder approval [3][4]. - The Notes will bear a 12% annual interest rate, payable in cash on the maturity date, which is one year from the closing date [5]. Shareholder Approval - The conversion of the Note Units will make Tiago Cunha a control person of the Company, requiring shareholder approval [4]. - The Company intends to hold a shareholder meeting to seek this approval [4]. Use of Proceeds - Net proceeds from the Offerings are expected to be allocated for exploration, development, corporate general and administrative expenses, and general working capital [7]. Regulatory Compliance - The Offerings will be conducted in compliance with Canadian regulations, targeting accredited investors and exempt purchasers [6]. - All securities issued will be subject to statutory hold periods under applicable securities legislation [6]. Company Overview - South Star Battery Metals Corp. focuses on developing battery metals projects in the Americas, with its Santa Cruz Graphite Project in Brazil being the first to enter production [12]. - The Company is also developing the BamaStar Project in Alabama, which has shown strong economic results with a pre-tax NPV of US$2.4 billion and an IRR of 35% [13].