South Star Battery Metals closes $302,610 private placement tranche

South Star Battery Metals Corp. (TSXV: STS) completed the first tranche of its non-brokered private placement, raising gross proceeds of $302,610. The company also secured $450,000 in bridge loans from directors and officers.

The private placement consisted of 1,375,500 units priced at $0.22 each, with each unit including one common share and one warrant exercisable at $0.22 for five years. The TSX Venture Exchange granted an extension for final acceptance of the private placement to August 22, 2025.

A company insider participated in the private placement for $220,000, acquiring 1,000,000 units. The transaction constitutes a related party transaction under securities regulations, though the company is relying on exemptions as the value does not exceed 25% of its market capitalization.

The bridge loans are evidenced by unsecured promissory notes bearing 12% annual interest, compounded monthly, with a maturity date of January 7, 2026. The notes include acceleration clauses triggered by completion of debt financing of at least $500,000 or equity financings totaling at least $3 million.

South Star plans to use proceeds from both the private placement and bridge loans for development, production, and general working capital requirements. The company operates the Santa Cruz Graphite Project in Brazil and is developing the BamaStar Project in Alabama.

All securities issued are subject to a four-month hold period and require TSX Venture Exchange approval. The warrants include an acceleration clause if the company's share price equals or exceeds C$1.25 for 10 consecutive trading days after the hold period.

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