South Star Battery Metals completes C$6.67M private placement

South Star Battery Metals Corp. (TSXV: STS) (OTCQB: STSBF) closed the final tranche of its private placement, raising C$3,411,638 through the issuance of 22,744,253 units at C$0.15 per unit. The company completed three tranches of the offering, generating total gross proceeds of C$6,672,000.

Each unit consists of one common share and one warrant. The warrants allow holders to purchase additional shares at C$0.20 each for five years, with potential acceleration if the stock trades at or above C$0.40 for ten consecutive days after four months.

Tiago Cunha, the company's interim CEO and director, purchased 12,342,087 units in the final tranche through funds he directs. Following this transaction, Cunha controls 25,455,552 shares, representing 23.92% of outstanding shares. This makes him a control person of the company, a designation shareholders approved at the annual meeting on November 17.

The annual meeting results showed shareholders approved all matters, including the re-election of directors Marc Leduc, Tiago Cunha, Priscilla Lima and Dan Wilton, and the re-appointment of MNP LLP as auditors.

South Star paid finder's fees totaling C$258,995 in cash and issued 1,987,722 shares to A8 Capital Advisors. The securities are subject to a four-month hold period under securities laws.

The company stated it will use proceeds for exploration and development activities, general administrative expenses, and working capital. South Star operates graphite projects in Brazil and Alabama, with its Santa Cruz project in Brazil beginning commercial production with first sales in May 2025.

You May Also Be Interested In

• Blockmate closes $1M private placement, plans Toronto roadshow
• Haoxi Health closes $4M direct offering via Univest Securities
• Goldman Sachs Reiterates Buy Rating on O'Reilly Automotive (ORLY)