VANCOUVER, British Columbia, June 07, 2022 (GLOBE NEWSWIRE) -- South Star Battery Metals Corp. (“South Star” or the “Company”) (TSXV: STS) (OTCQB: STSBF), is pleased to announce the signing of a Letter of Intent (“LOI”) with Graphex Technologies, LLC (“Graphex”) to jointly develop a manufacturing and processing facility for battery anode material. The parties intend to develop a definitive agreement by October 31, 2022 to share expertise and technology for the design, construction and operations of a battery anode material processing facility. Graphite feed stock is expected to be provided by South Star’s Santa Cruz Graphite Mine in Brazil and Ceylon Graphite Mine in the United States. The goals of the joint venture are to have a centrally located, vertically integrated supply chain for active battery anode and value-added materials supplied by two high-quality, scalable graphite operations in two strategic and stable jurisdictions in the Americas. The Companies previously announced a LOI to pursue a binding 5-year offtake agreement (March 24th, 2022)
Richard Pearce, CEO of South Star, said, “We are breaking ground on Santa Cruz Graphite Mine in June, 2022 and have commercial production planned for Q2 of 2023. The Ceylon Project in Alabama is advancing well, and we are starting metallurgy and battery testing programs. We are pleased to be further developing a long-term, strategic relationship with Graphex at a critical moment in the energy transition revolution. Graphex has been producing and selling high-quality battery anode material for a long time, and similar to us, looking to expand operations in the US. South Star believes that the only way to meet the growing demand is for experienced companies to develop strategic partnerships that accelerate the vertically integrated production of high-quality products that can be consistently delivered in a responsible and profitable manner. This partnership will benefit both parties and allow us to quickly deliver critical battery anode and other value add materials for clients in strategic locations around the world. Reliable, secure supply chains are the key to the world’s ability to execute on the exciting energy transition revolution underway, and South Star is pleased to be part of this paradigm shift.”
John DeMaio, CEO of Graphex Technologies said, “We look forward to collaborating with South Star to explore the exciting prospects of diversifying the upstream supply of graphite to the global EV ecosystem. The volume, quality, and stability of supply from their assets in Brazil and the U.S. coupled with our proven expertise in delivering high-volume, high-quality anode material would have significant positive impact on the industry’s ability to meet production projections for EVs in the coming years and decades.”
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 development pipeline is a 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)
+1 (604) 706-0212 x3002
Email: invest@southstarbatterymetals.com
RBMG – RB Milestone Group LLC (IR US)
Trevor Brucato, Managing Director
Email: southstar@rbmilestone.com
Twitter: https://twitter.com/southstarbm
Facebook: https://www.facebook.com/southstarbatterymetals
LinkedIn: https://www.linkedin.com/company/southstarbatterymetals/
YouTube: South Star Battery Metals - YouTube
CAUTIONARY STATEMENT
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.
FORWARD-LOOKING INFORMATION
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.
