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South Star Battery Metals Announces Letter of Intent to Enter into Binding 5-Year Offtake Agreement with Graphex Group Limited
VANCOUVER, British Columbia, March 24, 2022 (GLOBE NEWSWIRE) -- South Star Battery Metals Corp. (“South Star” or the “Company”) (TSXV: STS) (OTCQB: STSBF), is p
About this update from South Star Battery Metals Corp
[{"type":"text","content":" VANCOUVER, British Columbia, March 24, 2022 (GLOBE NEWSWIRE) -- South Star Battery Metals Corp. (“South Star” or the “Company”) (TSXV: STS) (OTCQB: STSBF), is pleased to announce that it has entered into a Letter of Intent (“LOI”) with Graphex Group Limited (“Graphex”) for up to 50,000 tonnes of natural flake graphite concentrate over a period of five years for the Santa Cruz Graphite Project in Brazil and the Ceylon Graphite Project in Alabama (“Projects”). The parties have agreed in the LOI to negotiate a binding offtake agreement (“Offtake Agreement”) within 60 days of signing the LOI. The LOI was signed on March 22, 2022 and terms and conditions of the agreement are confidential. The concentrate tonnages associated with this Offtake Agreement will be directed towards the uncoated and coated spherical graphite (SPG) markets used in Lithium-ion batteries (“LiB”). Graphex is a global leader in the industry and has been proficient in producing spherical graphite anode material for Li-ion batteries in Electric Vehicles (EVs) and other use cases in Jixi, China since 2008 and transacting commercially since 2013. Richard Pearce, CEO of South Star, said, “We are pleased to be forming this strategic partnership with Graphex and look at this as the start of a long-term relationship. South Star has high-quality, scalable graphite assets that are coming on-line in the very near-term, and we will be the first new graphite production in the Americas in over a decade. Our concentrates have been tested for LiB applications and performed exceptionally well. Graphex has been producing uncoated and coated SPG for years in China, has deep commercial relationships in this sector and is expanding into new strategic jurisdictions such as North America. We look forward to partnering with Graphex to provide high-quality products soon for clients in strategic locations around the world. Secure supply chains are the key to the world’s ability to execute on the exciting energy transition revolution underway, and South Star is pleased to be part of this paradigm shift.” “We are excited to sign this LOI and move toward this strategic offtake agreement with South Star at this critical time in the evolution of EV battery supply chains,” said John DeMaio, President of the Graphene Division of Graphex. “With demand for natural graphite anode material predict...