VANCOUVER, British Columbia, May 06, 2026 (GLOBE NEWSWIRE) -- South Star Battery Metals Corp. ("South Star" or the "Company") (TSXV:STS) (OTCQB:STSBF), is pleased to announce it intends to proceed with a non-brokered private placement of up to 26,666,667 common shares (the "Shares") at a price of CAD $0.15 per common share for gross proceeds of up to CAD $4.0 million (the "Offering").
Net proceeds are expected to be used to support the continued scaling and advancement of the Company's operations, including the execution of capital expenditures associated with the planned expansion of the Santa Cruz graphite operation toward a production capacity of 10,000 tonnes per annum, as well as for corporate general and administrative expenses and general working capital purposes.
As previously disclosed in the Company's April 28, 2026, news release regarding the discontinuation of the previously announced financing discussions with Sprott, the Board of Directors initiated a process to evaluate alternative funding solutions for the Company. Since then, the Company has been actively assessing and continues to assess a range of financing alternatives, including potential offtake agreements and prepayment structures, financing through governmental agencies and development institutions, as well as other strategic funding initiatives.
Given the time required to advance and finalize these alternatives, and in order to avoid any delays or constraints on the execution of the Company's operational ramp-up and expansion plans, the Board determined that proceeding with an equity financing represented the most prudent near-term solution.
The Company may pay finder's fees in connection with the Offering, within the limits permitted by the policies of the TSX Venture Exchange (the "Exchange"). Closing of the Offering remains subject to customary conditions, including receipt of all necessary corporate and regulatory approvals, including approval of the Exchange. The Offering is not subject to a minimum aggregate subscription amount.
Insiders, including related parties as defined under Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions ("MI 61-101"), may participate in the Offering. Mr. Tiago Cunha, Interim CEO, President and a director of the Company, directly or through affiliated entities, is expected to subscribe for an investment of up to ...
