Business
South Star Battery Metals Announces Closing of US$10 Million Financing with Sprott Private Resource Streaming and Royalty Corp. and Full Funding for Phase 1 Construction
South Star Battery Metals Announces Closing of US$10 Million Financing with Sprott Privat...
About this update from South Star Battery Metals Corp
[{"type":"text","content":"\n \n \n \n South Star Battery Metals Announces Closing of US$10 Million Financing with Sprott Private Resource Streaming and Royalty Corp. and Full Funding for Phase 1 Construction\n \n \n /* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n.prnml4{\nMARGIN-TOP:0em; MARGIN-RIGHT:0em; MARGIN-BOTTOM:0em; MARGIN-LEFT:0.33em !IMPORTANT\n}\n.prnbcc{\nBORDER-COLLAPSE: COLLAPSE; BORDER-TOP:1pt black; BORDER-RIGHT:1pt black; BORDER-BOTTOM:1pt black; BORDER-LEFT:1pt black\n}\n \n \n \n \n \n \n Canada NewsWire\n \n \n \n \n \n \n VANCOUVER, BC\n \n \n ,\n \n \n Nov. 22, 2022\n \n \n /CNW/ - South Star Battery Metals Corp. (\"South Star\" or the \"Company\") (TSXV: STS) (OTCQB: STSBF), is pleased to announce that it has closed the Phase 1 deposit (the \"Phase 1 Deposit\")  transaction under the previously announced metals purchase and sale agreement (the \"Agreement\") with Sprott Private Resource Streaming and Royalty Corp. (\"Sprott\") (see\n \n April 5, 2022\n \n ,\n \n April 18, 2022\n \n and\n \n October 5, 2022\n \n press releases). With the closing of the recent private placements and receipt of the Phase 1 Deposit to fund CAPEX pursuant to the Agreement, the Company believes it is fully funded for construction of the Phase 1 plant and mine at its Santa Cruz Graphite mine in Bahia, Brazil (the \"\n \n Santa Cruz\n \n or Project\").\n \n \n \n \n \n \n \n \n \n The Agreement includes a total cash consideration of up to\n \n US$28 million\n \n as prepayment for graphite concentrates from the Santa Cruz Project.  South Star will act as sales agent for Sprott for the percentage of production in favour of Sprott and subject to the Agreement.\n \n \n \n Stream Agreement Highlights:\n \n \n \n \n The Phase 1 Deposit is\n \n US$10 million\n \n , which is expected to fund 100% of the required Phase 1 CAPEX, with commercial production scheduled for Q4 of 2023.\n \n \n The Phase 1 Deposit will also be used to repay the outstanding principal and interest under the previously-announced\n \n US$2 million\n \n loan from Sprott.\n \n \n The Phase 2 Deposit (the \"Phase 2 Deposit\") ...