South Star Battery Metals Announces Board Change and Supplemental Disclosure in Respect of the Streaming Agreement with Sprott Resource Streaming and Royalty Corp for Santa Cruz Graphite Project in Brazil
VANCOUVER, British Columbia, April 18, 2022 (GLOBE NEWSWIRE) — South Star Battery Metals Corp. (“South Star” or the “Company”) (TSXV: STS) (OTCQB: STSBF), is announcing the retirement of Dave McMillan as Chairman and member of the Board effective April 15th, 2022. Marc P. Leduc, a board member since 2019, has been named the new Chairman effective April 15th, 2022.
Richard Pearce, President & CEO commented, “We would like to extend our sincere thanks to Dave for his hard work, dedication and distinguished service over the years and wish him all the success and happiness in his retirement. He has been a staunch supporter of South Star since its inception and our success today is largely dependent on his tireless efforts.”
Richard Pearce continued, “We are pleased to announce that Marc is assuming the role of Chairman of the Board and his wealth of project development, construction and operational experience is going to be an important resource in assisting the Company in moving Santa Cruz into production and scaling operations as well as advancing the Alabama project through the development phases to a capital allocation decision. He will be a big help to the team and a real positive for the Company.”
Mr. Leduc is a mining engineer and geologist with over 30 years of experience involving all aspects of the development, operations, planning and evaluation of mining projects including over 20 years in Latin America. Marc served as the President and CEO of Luna Gold Corp., operator of the Aurizona mine in Brazil, from 2015 to 2016. He also led the team restarting the Castle Mountain mine in the southwest US and served as COO and interim CEO of NewCastle Gold Ltd. Both companies were merged in 2017 to form Equinox Gold Corp. where he served as the Executive Vice President of US Operations after the merger. He is currently COO of Kore Mining Ltd. Throughout his career, Marc has demonstrated a proven ability of unlocking the maximum value in mining assets through his experience in the design and construction of large mines, heap leach and tailings facilities. He has global experience in the areas of complex metallurgy, site water management, heap leach planning and the use of innovative solutions to solve environmental concerns. Previously, Mr. Leduc was Chief Operating Officer at Lydian International Limited and President and COO of Bear Creek Mining Corporation. He holds a B.Sc. (Honors) in Mining Engineering from Queen’s University and a B.Sc. in Geology from the University of Ottawa.
SUPPLEMENTAL DISCLOSURE IN RESPECT OF THE STREAMING TRANSACTION
The Company also wishes to provide the following disclosure with respect to the security package surrounding the binding streaming agreement (“Agreement”) with Sprott Private Resource Streaming and Royalty (B) Corp. (“Sprott”) for the Santa Cruz Graphite Project in Brazil (the “Project”), to supplement the disclosure in its press release dated April 5, 2022 (the “Press Release”). Capitalized terms not otherwise defined below shall have the meanings ascribed to such terms in the Press Release.
The obligations of the Company’s affiliate, South Star Graphite Canada Corp. (“SSGCC”), under the Promissory Note, the Agreement and related documents have been guaranteed by the Company pursuant to a limited recourse guarantee, pursuant to which recourse against the Company is limited to certain collateral subject to the Initial Share Pledges (as defined below). The Company’s (and its affiliates’) obligations under the Promissory Note, the Agreement and related documents are secured by a pledge by the Company of the shares of its direct wholly-owned subsidiaries, SSGCC and Brasil Graphite Corp. (“BGC”), in favour of Sprott (collectively, the “Initial Share Pledges”). The obligations under the Agreement will be further guaranteed pursuant to a guarantee from each of Brazil Grafite Mineração Ltda. (“BGM”), the indirect wholly-owned subsidiary of the Company that holds the Project, and BGC, and further secured by a pledge of the shares of BGM and certain assets of BGM (including real property) relating to the Project.
ABOUT SOUTH STAR BATTERY METALS CORP
South Star Battery Metals Corp. is a Canadian battery metals project developer focused on the selective acquisition and development of near-term production projects in the Americas. South Star’s Santa Cruz Graphite Project, located in Southern Bahia, Brazil is the first of a series of industrial and battery metals projects that will be put into production. Brazil is the second-largest graphite-producing region in the world with more than 80 years of continuous mining. Santa Cruz has at-surface mineralization in friable materials, and successful large-scale pilot-plant testing (>30t) has been completed. The results of the testing show that approximately 65% of Cg concentrate is +80 mesh with good recoveries and 95%-99% Cg. With excellent infrastructure and logistics, South Star is carrying its development plan towards Phase 1 production projected in Q2 2023.
South Star’s next project in the pipeline is a development project in Alabama located in the middle of a developing electric vehicle, aerospace and defence hub in the southeastern United States. The Project is a historic mine active during World Wars I & II. Trenching, sampling, analysis and preliminary metallurgic testing has been completed. The testing indicated a traditional crush/grind/flotation concentration circuit achieved grades of approximately 96-97% with approximately 86% recoveries. and South Star is executing on its plan to create a multi-asset, diversified battery metals company with near-term operations in strategic jurisdictions. South Star trades on the TSX Venture Exchange under the symbol STS, and on the OTCQB under the symbol STSBF.
South Star is committed to a corporate culture, project execution plan and safe operations that embrace the highest standards of ESG principles based on transparency, stakeholder engagement, ongoing education and stewardship. To learn more, please visit the Company website at http://www.southstarbatterymetals.com.
This news release has been reviewed and approved by Richard Pearce, P.E., a “Qualified Person” under National Instrument 43-101 and President and CEO of South Star Battery Metals Corp.
On behalf of the Board,
Mr. Richard Pearce
Chief Executive Officer
For additional information, please contact:
South Star Investor Relations (Canada IR)
Email: [email protected]
RBMG – RB Milestone Group LLC (IR US)
Trevor Brucato, Managing Director
Email: [email protected]
YouTube: South Star Battery Metals – YouTube
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.
This news release and the Updated Technical Report contain references to inferred resources. The Report is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves.
This press release contains “forward-looking statements” within the meaning of applicable securities legislation. Forward-looking statements relate to information that is based on assumptions of management, forecasts of future results, and estimates of amounts not yet determinable. Any statements that express predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance are not statements of historical fact and may be “forward-looking statements”. Forward-looking statements in this press release include, but are not limited to, statements regarding: moving Santa Cruz into production and scaling operations as well as advancing the Alabama project; how the obligations under the Agreement will be further guaranteed and secured; and the Company’s plans and expectations.
Forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements, including, without limitation: risks related to failure to obtain adequate financing on a timely basis and on acceptable terms; risks related to the outcome of legal proceedings; political and regulatory risks associated with mining and exploration; risks related to the maintenance of stock exchange listings; risks related to environmental regulation and liability; the potential for delays in exploration or development activities or the completion of feasibility studies; the uncertainty of profitability; risks and uncertainties relating to the interpretation of drill results, the geology, grade and continuity of mineral deposits; risks related to the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses; results of prefeasibility and feasibility studies, and the possibility that future exploration, development or mining results will not be consistent with the Company’s expectations; risks related to commodity price fluctuations; and other risks and uncertainties related to the Company’s prospects, properties and business detailed elsewhere in the Company’s disclosure record. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements. Investors are cautioned against attributing undue certainty to forward-looking statements. These forward-looking statements are made as of the date hereof and the Company does not assume any obligation to update or revise them to reflect new events or circumstances. Actual events or results could differ materially from the Company’s expectations or projections.