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South Star Battery Metals Announces Closing of Final Tranche of Upsized Private Placement Raising Gross Proceeds of US$3M
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 Closing of Final Tranche of Upsized Private Placement Raising Gross Proceeds of US$3MTHIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES FOR DISSEMINATION IN THE UNITED STATES VANCOUVER, BC / ACCESSWIRE / January 8, 2025 / South Star Battery Metals Corp. (\"South Star\" or the \"Company\") (TSXV:STS)(OTCQB:STSBF), is pleased to announce that it that it has successfully completed the closing of the third and final tranche of its upsized, non-brokered private placement (the \"Private Placement\") of Units for gross proceeds to the Company of US$879,449.45 (CA$1,231,229.06). When combined with Tranche 1 and Tranche 2, the gross proceeds of the Private Placement to the Company total US$3,000,000 (CA$4,200,000). Funds from the Private Placement will be used for exploration, development, production activities, as well as corporate G&A and general working capital requirements.Tranche 3 of the Private Placement consists of the issuance of 2,045,231 Units (the \"Units\"). Each Unit consists of one common share (a \"Share\") priced at US$0.43 (CA$0.602) and one common share purchase warrant (a \"Warrant\"). Each Warrant is exercisable into one Share at a price of US$0.89 (CA$1.246) for five years from the date of issue and is subject to an acceleration clause as detailed below.Final closing of the Private Placement is subject to customary closing conditions, including, but not limited to, the receipt of all necessary approvals, including the approval of the TSX Venture Exchange. In connection with the third tranche closing of the Private Placement, the Company paid finder's fees of US$40,000 (CA$56,000) and issued 55,813 common shares (the \"Finders Shares\") to A8 Capital Advisors Latam Ltd. The Units and Finder's Shares issued pursuant to the Private Placement will be subject to a four-month hold period.Insiders of the Company participated in Tranche 3 of the Private Placement for an aggregate amount of US$29,440.45 (CA$41,216.53) for 68,466 Units. Insider participation for the Private Placement totaled US$936,798.50 (CA$1,311,517.90) for 2,178,601 Units. The transaction with the director, officers and insiders constitutes a \"related party transaction\" as defined under Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions (\"MI 61-101\"). ...