South Star Battery Metals Corp. (TSXV: STS) (OTCQB: STSBF) closed the final tranche of its non-brokered private placement, issuing 16,587,667 common shares at CAD $0.15 per share for gross proceeds of CAD $2,488,000, according to a company statement.

The Vancouver-based battery metals developer raised total gross proceeds of CAD $4,800,000 from the complete share offering, which included a first tranche that closed on May 15, 2026.

The company will use net proceeds to support scaling operations, including capital expenditures for planned expansion of its Santa Cruz graphite operation toward a production capacity of 10,000 tonnes per annum, as well as corporate expenses and working capital.

The shares issued in the final tranche are subject to a four-month-and-one-day statutory hold period from the date of issuance. South Star paid aggregate finder's fees of CAD $182,981 in cash and 1,474,567 shares to A8 Capital Advisors Latin America Ltd.

Tiago Cunha, the company's interim chief executive officer, president and director, purchased 210,136 shares through Ace Global Special Opportunities BRL Fundo De Investimento Financeiro EM Acoes, bringing his total control to 29.67% of outstanding shares. Director Priscila Costa Lima purchased 200,000 shares, maintaining control of less than 1% of outstanding shares.

The insider participation constitutes a related party transaction under Multilateral Instrument 61-101. The company relied on exemptions from formal valuation and minority shareholder approval requirements as the fair market value of subscribed shares does not exceed 25% of the company's market capitalization.

South Star's Santa Cruz graphite project is located in southern Bahia, Brazil.