South Star raises C$2.4 million in second tranche of private placement

South Star Battery Metals Corp. (TSXV: STS) (OTCQB: STSBF) closed the second tranche of its non-brokered private placement, issuing 16,214,234 units at C$0.15 per unit for gross proceeds of C$2,432,135.

Each unit consists of one common share and one warrant allowing the purchase of an additional share at C$0.20 for five years from closing. The warrant expiry may be accelerated if the company's shares trade at or above C$0.40 for ten consecutive trading days after four months from closing, with 30 days' notice.

The securities are subject to a four-month hold period under securities laws. The company plans to use proceeds for exploration and development activities, general expenses, and working capital. The offering requires final approval from the TSX Venture Exchange.

Including the first tranche closed October 10, South Star has raised total gross proceeds of C$3,260,362 under the unit offering. The company paid finder's fees of C$10,530 for the second tranche.

South Star plans to hold a shareholder meeting around November 17 to approve interim CEO Tiago Cunha becoming a control person. Upon approval, funds controlled by Cunha will purchase an additional 12,342,088 units, completing a C$2,085,000 investment commitment.

Company insiders purchased 4,226,667 units in the second tranche, constituting a related party transaction under securities regulations. The company is exempt from formal valuation and minority approval requirements as the transaction value does not exceed 25% of market capitalization.

The company anticipates closing additional tranches in coming weeks, subject to regulatory approvals. South Star develops battery metals projects in the Americas, including the Santa Cruz Graphite Project in Brazil and the BamaStar Project in Alabama.

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