Business
South Star Battery Metals Announces 2023 Year in Review, Santa Cruz Construction Update, Qualification for Corporate Income Tax Exclusion and 2024 Catalysts
THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES FOR DISSEMINATION IN THE UNIT...
About this update from South Star Battery Metals Corp
[{"type":"text","content":"South Star Battery Metals Announces 2023 Year in Review, Santa Cruz Construction Update, Qualification for Corporate Income Tax Exclusion and 2024 CatalystsTHIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES FOR DISSEMINATION IN THE UNITED STATESVANCOUVER, BC / ACCESSWIRE / April 3, 2024 / South Star Battery Metals Corp. (\"South Star\" or the \"Company\") (TSXV:STS)(OTCQB:STSBF), is pleased to provide the Company's 2023 year in review, a Santa Cruz Phase 1 construction update and the anticipated 2024 catalysts for Santa Cruz and BamaStar. Additionally, under the Brazilian regional development incentive program administered by the Superintendência do Desenvolvimento do Nordeste (\"SUDENE\"), South Star's Santa Cruz project has also been granted eligibility to receive certain income tax exemptions, including a 75% corporate income tax reduction for ten years.OverviewSouth Star had a very exciting and eventful 2023. While we are pleased with our overall progress, we are never satisfied as we advance bringing Santa Cruz Phase 1 operations online in Brazil and transitioning from a development company to the first new graphite miner/processor in the Americas since 1996. Santa Cruz had zero lost time accidents in 2023, and the overall construction advanced significantly. However, equipment supplier delays (mills), contractor workforce shortages, and weather all contributed to an overall Phase 1 construction delay of 6 months (June 2024) compared to the original schedule. While most of the delays are not in the Company's control, the team has put significant time and effort into minimizing the risk and associated impacts while ensuring continued advancement safely and responsibly. The delays are disappointing, but the positive news is that Santa Cruz should still be able to produce close to our original goals of 5,000 tonnes (\"t\") of graphite production and sales in 2024, assuming the team can ramp up to the plant nameplate production capacity of 1,000 tonnes per month (\"tpm\") in Q4 of 2024. BamaStar also advanced significantly over the year, and the project continues to show promise and be derisked with the continued favorable results of the studies. Two drilling campaigns were completed, and a National Instrument (\"NI\") 43-101 technical report with the maiden resource estimate during the year was issued, ag...