Battery Metals

Electric Royalties Ltd. (TSXV:ELEC)(OTCQB:ELECF) ("Electric Royalties" or the "Company") is pleased to provide an asset update on its current royalty portfolio

Brendan Yurik, CEO of Electric Royalties, commented: "Lithium assets comprise 40% of our royalty portfolio so we are tremendously encouraged by the 350% increase in lithium prices over the past 12 months1. In the last quarter alone, more than $200 million has been raised for the advancement of these assets. Not only has there been encouraging results announced at the Cancet and Seymour Lake lithium projects, but of paramount importance is the progress at the Authier project. Sayona Mining's North American Lithium operation, which is expected to integrate Authier, is fully financed to restart production and to develop Authier, and has completed 30% of the plant and equipment upgrades. We expect Authier to be the first of our lithium assets (royalties) to enter production."

Highlights since the Company's previous update on July 21, 2022:

  • Authier Lithium Project(0.5% Gross Metal Royalty) - Sayona Mining Limited (ASX: SYA) ("Sayona") announced on August 4, 2022 that it has further advanced its planned restart of spodumene (lithium) production at the North American Lithium (NAL) operation in Québec, Canada, with approximately 30% of plant and equipment upgrades now completed. Sayona is on track to recommence production at NAL in Q1 2023, becoming the only local lithium supplier in North America, after having committed around $100 million to the restart. Sayona plans to combine mineralized material produced from Authier with mineralized material at the nearby NAL site, with a goal to facilitate improvement in plant performance and economics. A pre-feasibility study for NAL integrates Authier - on which Electric Royalties holds a 0.5% gross metal royalty - with the NAL operation into Sayona's Abitibi Lithium Hub. A feasibility study for NAL-Authier is underway.
  • Cancet Lithium Project (1.0% Net Smelter Royalty) - Winsome Resources Limited (ASX: WR1) ("Winsome") provided exploration updates for the Cancet lithium project in Québec, Canada on July 14, 2022 and August 10, 2022.

    Final results for the 2022 winter drill program have been received and have added to the footprint of lithium mineralization at the Cancet deposit. Of the seven drill holes for which results have been received, two intersected zones of lithium and tantalum mineralization. The other five targets, although showing promise from earlier magnetic surveying, did not intersect any significant mineralization and have been closed out. The confirmation of these results and the increased knowledge gained by investigating nearby target zones provides direction for Winsome to continue its resource development and exploration activities at Cancet. Results from the drill program are expected to be incorporated in the inaugural JORC mineral resource estimate planned in the near term. Electric Royalties is relying on the information provided by Winsome and is unable to verify the reported drill data.

    Winsome has also commenced surface stripping, channel sampling and mapping of the main pegmatite dyke, to help build a clearer understanding of the area's prospectivity. It expects to soon generate new drill targets for the upcoming autumn/winter campaign, and has secured heli-portable reverse circulation and diamond drill rigs to investigate the new pegmatite occurrences recently discovered at Cancet (see Winsome's news release dated July 14, 2022).

    Seymour Lake Lithium Project (1.5% Net Smelter Royalty) -Green Technology Metals Limited (ASX: GT1) ("Green Technology Metals") announced on July 19, 2022 that NorthWinds Environmental Services, TBT Engineering and Englobe have recommenced its second year of baseline environmental monitoring at the Seymour Lake lithium project in northwest Ontario.

    Up to three years of seasonal baseline surveys can be required to mitigate environmental impact and identify risks to support future project permitting and environmental approvals.

    The baseline surveys are predominantly focused on fauna, flora, groundwater, surface water and archaeology. GT1 reported no confirmed sightings of any threatened or endangered species to date.

David Gaunt, P.Geo., a qualified person who is not independent of Electric Royalties, has reviewed and approved the technical information in this release.

1https://tradingeconomics.com/commodities

About Electric Royalties Ltd.

Electric Royalties is a royalty company established to take advantage of the demand for a wide range of commodities (lithium, vanadium, manganese, tin, graphite, cobalt, nickel, zinc and copper) that will benefit from the drive toward electrification of a variety of consumer products: cars, rechargeable batteries, large scale energy storage, renewable energy generation and other applications.

Electric vehicle sales, battery production capacity and renewable energy generation are slated to increase significantly over the next several years and with it, the demand for these targeted commodities. This creates a unique opportunity to invest in and acquire royalties over the mines and projects that will supply the materials needed to fuel the electric revolution.

Electric Royalties has a growing portfolio of 19 royalties, including one royalty that currently generates revenue. The Company is focused predominantly on acquiring royalties on advanced stage and operating projects to build a diversified portfolio located in jurisdictions with low geopolitical risk, which offers investors exposure to the clean energy transition via the underlying commodities required to rebuild the global infrastructure over the next several decades towards a decarbonized global economy.

For further information, please contact:

Brendan Yurik
CEO, Electric Royalties Ltd.
Phone: (604) 364‐3540
Email: Brendan.yurik@electricroyalties.com
www.electricroyalties.com

Scott Logan
Renmark Financial Communications Inc.
Phone: (416) 644-2020 or (212) 812-7680
Email: slogan@renmarkfinancial.com
www.renmarkfinancial.com

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange), nor any other regulatory body or securities exchange platform, accepts responsibility for the adequacy or accuracy of this release.

Cautionary Statements Regarding Forward-Looking Information and Other Company Information

This news release includes forward-looking information and forward-looking statements (collectively, "forward-looking information") with respect to the Company within the meaning of Canadian securities laws. This news release includes information regarding other companies and projects owned by such other companies in which the Company holds a royalty interest, based on previously disclosed public information disclosed by those companies and the Company is not responsible for the accuracy of that information, and that all information provided herein is subject to this Cautionary Statement Regarding Forward-Looking Information and Other Company Information.Forward-looking information is typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate and similar expressions, or are those, which, by their nature, refer to future events. This information represents predictions and actual events or results may differ materially. Forward-looking information may relate to the Company's future outlook and anticipated events and may include statements regarding the financial results, future financial position, expected growth of cash flows, business strategy, budgets, projected costs, projected capital expenditures, taxes, plans, objectives, industry trends and growth opportunities of the Company and the projects in which it holds royalty interests.

While management considers these assumptions to be reasonable, based on information available, they may prove to be incorrect. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company or these projects to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. These risks, uncertainties and other factors include, but are not limited to risks associated with general economic conditions; adverse industry events; marketing costs; loss of markets; future legislative and regulatory developments involving the renewable energy industry; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favourable terms; the mining industry generally, the Covid-19 pandemic, recent market volatility, income tax and regulatory matters; the ability of the Company or the owners of these projects to implement their business strategies including expansion plans; competition; currency and interest rate fluctuations, and the other risks.

The reader is referred to the Company's most recent filings on SEDAR as well as other information filed with the OTC Markets for a more complete discussion of all applicable risk factors and their potential effects, copies of which may be accessed through the Company's profile page at www.sedar.com and at otcmarkets.com.

SOURCE: Electric Royalties Ltd.



View source version on accesswire.com:
https://www.accesswire.com/713155/Electric-Royalties-Provides-Update-on-Lithium-Royalty-Portfolio

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Electric Royalties


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Electric Royalties Provides Update on Royalty Portfolio

Electric Royalties Provides Update on Royalty Portfolio

Electric Royalties Ltd. (TSXV:ELEC)(OTCQB:ELECF) ("Electric Royalties" or the "Company") is pleased to provide an asset update on its current royalty portfolio

Brendan Yurik, CEO of Electric Royalties, commented: "Despite the difficult equity markets in the past six months, it has been tremendously exciting to see progress continue across our portfolio, particularly at our lithium assets. Upon forecast restart in Q1 2023, Sayona Mining's North American Lithium (NAL) operation will become Canada's only producing lithium mine; NAL will seek to integrate millfeed from the Authier project on which we have a 0.5% gross metal royalty. We acquired the Authier royalty approximately two and a half years ago and the project has advanced substantially while lithium prices have climbed1. Our other lithium royalties, Seymour Lake and Cancet, continue to show promise, and we eagerly await the Seymour Lake preliminary economic assessment targeted for Q1 2023. Having one of the largest lithium royalty portfolios in the world, we're well positioned to benefit from the strong lithium market.

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CORRECTION FROM SOURCE; Electric Royalties To Acquire 0.75% GRR on Producing Tin-Tantalum Mine in Spain

CORRECTION FROM SOURCE; Electric Royalties To Acquire 0.75% GRR on Producing Tin-Tantalum Mine in Spain

This news release contains amendments to the paragraph below the Financing section heading, and the year production commenced at the Penouta Mine. Complete corrected text follows

Electric Royalties Ltd. (TSXV:ELEC) (OTCQB:ELECF) ("Electric Royalties" or the "Company")is pleased to announce the signing of an agreement with Strategic Minerals Europe Corp. (NEO: SNTA) (OTCQB: SNTAF) ("Strategic Minerals") to acquire a newly granted 0.75% Gross Revenue Royalty (the "0.75% GRR") on the producing Penouta tin-tantalum mine in Spain (the "Project" or "Penouta") in exchange for a cash payment of C$1,000,000 and 500,000 common shares of Electric Royalties. In addition, the Company will have an option for a period of 7 months from closing to acquire an additional 0.75% GRR (the "0.75% Option GRR") on Penouta in exchange for an additional cash payment of C$1,250,000. The royalty rates will be reduced to 0.5% respectively once certain minimum royalty payments have been made.

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CORRECTION FROM SOURCE: Electric Royalties to Acquire 0.75% GRR on Producing Tin-Tantalum Mine in Spain

CORRECTION FROM SOURCE: Electric Royalties to Acquire 0.75% GRR on Producing Tin-Tantalum Mine in Spain

This news release has been amended to add "(Mt)" in Table 1. Complete corrected text follows

Electric Royalties Ltd. (TSXV:ELEC) (OTCQB:ELECF) ("Electric Royalties" or the "Company")is pleased to announce the signing of an agreement with Strategic Minerals Europe Corp. (NEO: SNTA) (OTCQB: SNTAF) ("Strategic Minerals") to acquire a newly granted 0.75% Gross Revenue Royalty (the "0.75% GRR") on the producing Penouta tin-tantalum mine in Spain (the "Project" or "Penouta") in exchange for a cash payment of C$1,000,000 and 500,000 common shares of Electric Royalties. In addition, the Company will have an option for a period of 7 months from closing to acquire an additional 0.75% GRR (the "0.75% Option GRR") on Penouta in exchange for an additional cash payment of C$1,250,000. The royalty rates will be reduced to 0.5% respectively once certain minimum royalty payments have been made.

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STRATEGIC MINERALS ENTERS INTO A LETTER OF INTENT FOR A PROPOSED GROSS REVENUE ROYALTY ON THE PENOUTA MINE

STRATEGIC MINERALS ENTERS INTO A LETTER OF INTENT FOR A PROPOSED GROSS REVENUE ROYALTY ON THE PENOUTA MINE

Strategic Minerals Europe Corp. (NEO: SNTA) (FRA: 26K0) (OTCQB: SNTAF) ("Strategic Minerals" or the "Company"), a company focused on the production, development, and exploration of tin, tantalum and niobium, announces that it has entered into a letter of intent (the "LOI") with Electric Royalties Ltd. (TSXV: ELEC) (OTCQB: ELECF) ("Electric Royalties") with respect to the proposed grant to Electric Royalties of a gross revenue royalty on the Company's Penouta tin-tantalum mine in Spain (the "Proposed Transaction").

Pursuant to the LOI, it is proposed that Electric Royalties will acquire a 0.75 percent gross revenue royalty on the production of the Company's Penouta mine in consideration for a cash payment of C$1.0 million and the issuance of 500,000 common shares in the capital of Electric Royalties to the Company. Electric Royalties will also have the option for a period of seven months from the closing date of the Proposed Transaction to acquire an additional 0.75 percent royalty at the Penouta mine in consideration for a further cash payment of C$1.25 million . The royalty rates will be reduced to 0.5 percent respectively once C$1.67 million in royalty revenues have been paid to Electric Royalties.

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Electric Royalties to Acquire 0.75% GRR on Producing Tin-Tantalum Mine in Spain

Electric Royalties to Acquire 0.75% GRR on Producing Tin-Tantalum Mine in Spain

Electric Royalties Ltd. (TSXV:ELEC)(OTCQB:ELECF) ("Electric Royalties" or the "Company") is pleased to announce the signing of an agreement with Strategic Minerals Europe Corp. (NEO: SNTA) (OTCQB: SNTAF) ("Strategic Minerals") to acquire a newly granted 0.75% Gross Revenue Royalty (the "0.75% GRR") on the producing Penouta tin-tantalum mine in Spain (the "Project" or "Penouta") in exchange for a cash payment of C$1,000,000 and 500,000 common shares of Electric Royalties. In addition, the Company will have an option for a period of 7 months from closing to acquire an additional 0.75% GRR (the "0.75% Option GRR") on Penouta in exchange for an additional cash payment of C$1,250,000. The royalty rates will be reduced to 0.5% respectively once certain minimum royalty payments have been made

Brendan Yurik, CEO of Electric Royalties commented: "We are tremendously excited about adding this producing tin-tantalum royalty to our metals portfolio. The Penouta Mine is currently the largest tin and tantalum producer in all of Europe1. The operations team at Strategic Minerals has a proven track record of building and operating mines. Penouta has been steadily increasing production since the start of 2022. The mine's best quarter was in September with production of 80 tonnes of primary concentrate of tin and tantalum. Our capital is expected to be well utilized for mine improvements, as well as allowing Strategic Minerals to potentially add additional revenue streams from Penouta.

"We're delighted to partner with Strategic Minerals on this royalty financing and to get our first cash flow exposure to tin. Commodity research firm Roskill forecasts that total market demand for refined tin will exceed 515 kilotonnes by 2030, most of it accounted for by electronic and industrial solder (40%), and also the substantial rise of lithium-ion batteries (9%). Demand increases will require substantial amounts of new refined supply, requiring additional tin feedstock sources2."

Penouta Tin-Tantalum Royalty Acquisition Highlights

  • Europe's biggest producer of tin and tantalum.
  • Proven operations team with a track record of successfully building and operating mines.
  • September production of 66 tonnes of cassiterite concentrate with a tin content of 70.2% and 14 tonnes of tantalite/columbite concentrate containing 25.5% tantalite and 24.8% columbite.
  • Q2 2022 revenues of US$4.7 million, a significant increase year over year. Adjusted EBITDA reached US$1.2 million or 25.8% as a percentage of sales for the second quarter3.
  • Additional potential opportunities to add new revenue streams from high-grade feldspar and rare earths extraction from historical tailings.
  • Long potential mine life based on total measured and indicated resources of 76.3 million tonnes (see Table 1).

Penouta Mine Overview

The Penouta Mine is located in the north-western Spanish province of Ourense. The project has been mined since Roman times, with small underground workings following mineralized quartz veins within the leucogranite. In the early 1900s, a small mining lease was granted, primarily for kaolin, followed by a number of other mining leases in the area. The Penouta Mine was operated by a previous owner between 1976 and 1982, extracting cassiterite and tantalum mineralization by open pit methods.

Table 1: Pit-constrained SRK Mineral Resource Statement for the Penouta tin-tantalum hard rock deposit, effective date March 5, 20214.

Category

Tonnes

Grade

Metal

Ta2O5 Eq (ppm)

Tin (ppm)

Tantalum (ppm)

Ta2O5 (ppm)

Tin (kt)

Tantalum (kt)

Measured

7.6

184

600

85

103

4.6

0.6

Indicated

68.6

145

426

72

88

29.2

4.9

Total Measured & Indicated

76.3

149

443

73

89

33.8

5.6

Inferred

57

129

389

62

76

22

4

Notes:

  1. Mineral resources are not mineral reserves and do not have demonstrated economic viability.
  2. All figures are rounded to reflect the relative accuracy of the estimate; numbers may not add up due to rounding.
  3. The standard adopted in respect of the reporting of Mineral Resources for the Project is in accordance with the terminology, definitions and guidelines given in the Canadian Institute of Mining, Metallurgy and Petroleum Standards on Mineral Resources and Mineral Reserves (CIM Code).
  4. SRK reasonably expects portions of the Penouta deposit to be amenable to open pit mining methods. Open pit Mineral Resources are constrained to within a Whittle optimized pit and reported based on a Ta2O5Eq Resource cut-off which considers processing costs and G&A costs totalling US$7.79/t. Pit slope angles were set to 45 degrees.
  5. Resources are reported at an open pit cut-off grade of 60 ppm Ta2O5Eq.
  6. Cut-off grades are based on a price of US$178/kg and recoveries of 75% for Ta2O5, and US$24/kg and recoveries of 75% for tin.
  7. It is reasonably expected, but not guaranteed, that the majority of Inferred Mineral Resources could be upgraded to Indicated Mineral Resources with continued exploration.
  8. Inferred Resources are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as Mineral Reserves.

In January 2021, Strategic Minerals re-commenced open pit production of tin and tantalum and in June 2022, it received an exploitation permit to mine for 30 years, renewable for up to 75 years. The mineral concentrate contains approximately 70% tin (cassiterite) and 30% tantalum. In September, the company achieved the highest monthly production levels of the year (see Table 2).

Table 2: Penouta Mine production, Q2 2021 to September 2022.

Q2 2021

Q2 2022

July 2022

August 2022

Sept 2022

Total Concentrate (tonnes)

107.0

181.7

63.1

63.0

80.2

Cassiterite (tonnes)

80.0

153.3

54.8

53.1

66.2

Tin %

63.7

71.2

70.6

70.8

70.2

Tantalite / Columbite (tonnes)

27.0

28.4

8.3

9.9

14.0

Tantalite (%)

15.5

23.0

22.3

25.5

25.5

Columbite (%)

16.7

23.0

24.7

26.8

24.8

Acquisition Terms

Electric Royalties is acquiring the 0.75% GRR on the Penouta tin-tantalum mine for a total consideration of C$1,000,000 cash and 500,000 common shares of the Company ("Consideration Shares"). Upon receiving C$1,666,667 in royalty revenues from the 0.75% GRR, the royalty rate will be reduced to a 0.5% GRR. Electric Royalties will also have the option for a period of 7 months to acquire an additional 0.75% Option GRR in exchange for C$1,250,000 cash. Assuming exercise of the option, upon payment of C$1,667,666 in royalty revenues from the 0.75% Option GRR, the Option GRR rate will be reduced to 0.5%.

The transaction noted herein is subject to completion of due diligence, approval of the TSX Venture Exchange and other customary conditions.

Financing

The Company has entered into a financing commitment, to be drawn at the election of the Company, with a significant shareholder of the Company. The commitment is C$2 million convertible loan facility with a term of 3 years, bearing interest at 15%, with interest payments capitalized into the principal and due at the end of the loan term. At the discretion of the shareholder, the loan is convertible into common shares of Electric Royalties at C$0.50 per share if the Company's shares trade over that price for a period of five consecutive trading days throughout the term. The funds, if required, would be used to fund the cash portion of the acquisition payment for the producing Penouta royalty and will be secured over Electric Royalties' interest in that royalty. This loan facility is subject to the approval of the TSX Venture Exchange, the completion of loan documentation and other customary closing conditions.

David Gaunt, P.Geo., a Qualified Person who is not independent of Electric Royalties, has reviewed and approved the technical information in this release.

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NMG Engages Hybrid Financial and Announces Cancellation of Options

Nouveau Monde Graphite Inc. (the "Company" or "Nouveau Monde") ( TSXV: NOU ; NYSE: NMG) is pleased to announce that it has, subject to all required regulatory approvals, including the approval of the TSX Venture Exchange (the "Exchange"), retained Hybrid Financial Ltd. ("Hybrid") to provide assistance in all aspects of a marketing campaign for the Company, pursuant to an agreement entered into between the Company and Hybrid effective as of December 1, 2022 (the "Hybrid Agreement").

The services provided by Hybrid to the Company are the access and use of a database of registered financial professionals in North America (the "Services"). Hybrid is not promoting the specific purchase or sale of securities. It provides its database, technology, email tracking and call center services to enable the Company to disseminate its information to financial professionals only. Hybrid provides its services directly to the Company.

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Lomiko Metals CEO Says Graphite is Poised for Prime Time

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Graphite Market at a "Turning Point" as Demand for EV Batteries Rises

Demand for graphite used in electric vehicle (EV) batteries is set to soar in the next decade, and even though prices haven’t yet rallied as much as lithium, the market might be at its turning point.

The role of graphite, the most commonly used anode material, took center stage at this year’s Graphite and Anodes conference in Los Angeles. Hosted by Benchmark Mineral Intelligence, the two-day event brought together industry leaders from the natural and synthetic graphite sector as well as companies innovating in the anode space.

Here’s a brief overview of the main themes discussed at the conference that every investor interested in the battery metals space should keep in mind.

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South Star Battery Metals Announces Closing of US$10 Million Financing with Sprott Private Resource Streaming and Royalty Corp. and Full Funding for Phase 1 Construction

South Star Battery Metals Announces Closing of US$10 Million Financing with Sprott Private Resource Streaming and Royalty Corp. and Full Funding for Phase 1 Construction

 South Star Battery Metals Corp. ("South Star" or the "Company") (TSXV: STS) (OTCQB: STSBF), is pleased to announce that it has closed the Phase 1 deposit (the "Phase 1 Deposit")  transaction under the previously announced metals purchase and sale agreement (the "Agreement") with Sprott Private Resource Streaming and Royalty Corp. ("Sprott") (see April 5, 2022 April 18, 2022 and October 5, 2022 press releases). With the closing of the recent private placements and receipt of the Phase 1 Deposit to fund CAPEX pursuant to the Agreement, the Company believes it is fully funded for construction of the Phase 1 plant and mine at its Santa Cruz Graphite mine in Bahia, Brazil (the " Santa Cruz or Project").

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Altech Chemicals Ltd Proposed Change of Company Name to Altech Batteries Limited

Perth, Australia (ABN Newswire) - Altech Chemicals Limited (ASX:ATC) (FRA:A3Y) is pleased to advise that, following a Board of Directors meeting, the Board has decided to change the Company's name to 'Altech Batteries Limited'. The name change will require the approval of shareholders at the next General Meeting in the new year. In the 2022 Annual Report, Managing Director, Iggy Tan stated that the "Company is undergoing a transition to be a battery energy company to meet a battery storage future."

Altech intends to retain the current ASX ticker as "ATC". The Board believes the proposed new name reflects the vision of Altech to meet a battery storage future as the world transitions to the electrification of energy solutions. The proposed name is consistent with the business and market segments of all three of Altech's current projects.

The Company also believes that the proposed name will allow for marketing of the Company's future products in a more beneficial manner.

Altech's three current projects are:
1. CERENERGY(R) Battery Project (100 MWh pa) - Alternative Salt Nickel Battery for Grid Storage

2. Silumina Anodes(TM) Project (10,000 tpa) - Alumina Coated Silicon Graphite Anode Material for Batteries

3. High Purity Alumina Project (4,500 tpa) - For today's Lithium-Ion Batteries and the Future's Solid State Batteries



About Altech Chemicals Ltd:

Altech Chemicals Limited (ASX:ATC) (FRA:A3Y) is aiming to become one of the world's leading suppliers of 99.99% (4N) high purity alumina (Al2O3) through the construction and operation of a 4,500tpa high purity alumina (HPA) processing plant at Johor, Malaysia. Feedstock for the plant will be sourced from the Company's 100%-owned kaolin deposit at Meckering, Western Australia and shipped to Malaysia.

HPA is a high-value, high margin and highly demanded product as it is the critical ingredient required for the production of synthetic sapphire. Synthetic sapphire is used in the manufacture of substrates for LED lights, semiconductor wafers used in the electronics industry, and scratch-resistant sapphire glass used for wristwatch faces, optical windows and smartphone components. Increasingly HPA is used by lithium-ion battery manufacturers as the coating on the battery's separator, which improves performance, longevity and safety of the battery. With global HPA demand approximately 19,000t (2018), it is estimated that this demand will grow at a compound annual growth rate (CAGR) of 30% (2018-2028); by 2028 HPA market demand will be approximately 272,000t, driven by the increasing adoption of LEDs worldwide as well as the demand for HPA by lithium-ion battery manufacturers to serve the surging electric vehicle market.

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South Star Battery Metals Announces Closing of $2.3 Million of the Non-Brokered Private Placement and Phase 1 Construction Updates

South Star Battery Metals Announces Closing of $2.3 Million of the Non-Brokered Private Placement and Phase 1 Construction Updates

South Star Battery Metals Corp. ("South Star" or the "Company") (TSXV: STS) (OTCQB: STSBF), is pleased to announce that it has completed the second tranche of its previously announced non-brokered private placement of units (the "Private Placement" or the "Offering") for total proceeds of C$2,326,700 . The entire second tranche of the Offering was with global institutional investors who are very familiar with the battery metals and mining sectors. Net proceeds from the Private Placement will be used for exploration, development, construction activities, corporate G&A and general working capital requirements. Phase 1 commercial production is planned for Q4 2023.

South Star Battery Metals Announces Closing of $2.3 Million of the Non-Brokered Private Placement and Phase 1 Construction Updates (CNW Group/South Star Battery Metals Corp.)

With the closing of the second tranche of the financing, the Company should meet all the condition precedents to the Phase 1 closing under the Sprott Private Resource Streaming and Royalty Corp. ("Sprott") streaming agreement ("Agreement") (see April 5, 2022 , April 18, 2022 and October 5, 2022 press releases). The Company anticipates the Phase 1 closing under the Sprott Agreement in November 2022.  With the release of the Phase 1 funds of US$10,000,000 for CAPEX due on closing under the Sprott Agreement, the Company will be fully funded for construction of the Phase 1 plant and mine at the Santa Cruz Graphite mine in Bahia, Brazil .

Richard Pearce , CEO of South Star, said, "We have successfully partnered with strong, long-term institutional investors familiar with Brazil , mineral resources and battery metals sector. We should close the Sprott Agreement in short order and will be fully funded for Phase 1 CAPEX. The owner's team is in place for construction, and we have started signing contracts as well as making down payments on critical path major equipment. Earthworks and civil infrastructure contractors are signed with mobilization planned in early December 2022 . All the other contractors for Phase 1 have been prequalified, and we are finalising the negotiations for the balance of the contracts. We will deliver on our promise and commitment to be the first new graphite production since 1996. Our team is looking forward to putting shovels in the ground and moving the Project off the paper and into reality. Having started investing in Santa Cruz in 2010, we are very excited to have near-term production and cashflows on the horizon."

The second tranche of the Private Placement consists of 4,390,000 units priced at C$0.53 per unit (the "Units"). Each Unit consists of one (1) common share and one (1) common share purchase warrant (the "Warrants"). Each Warrant entitles the holder to purchase one additional common share of the Company at an exercise price of C$1.25 per common share for a period of five years from the date of issue. The securities issued in this first tranche closing will be subject to a four-month hold period from the date of closing and approval by the TSXV, expiring March 16, 2023 . In connection with closing of the second tranche of the Private Placement, the Company issued an aggregate amount of 73,300 finders' warrants and paid $116,547 in cash finders' fees to a certain finder.  Each finders' warrant entitles the holder to acquire one common share of the Company for a period of five years from the date of issue at a price of $0.53 .  These finders' warrants are in addition to 77,944 finder's warrants issued in connection with the closing of the first tranche of the Private Placement.  An aggregate of 8,750 of the finder's warrants issued in connection with the first tranche were exercisable at a price of $1.25 for five years from the date of issue.   An aggregate of 69,194 of the finders' warrants issued in connection with the first tranche were exercisable at a price of $0.53 for five years from the date of issue.

Acceleration Clause

If during a period of ten consecutive trading days between the date that is four (4) months following the closing of the Private Placement and the expiry of the Warrants the daily volume weighted average trading price of the common shares of the Company on the TSXV (or such other stock exchange where the majority of the trading volume occurs) exceeds C$2.50 for each of those ten consecutive days, the Company may, within 30 days of such an occurrence, give written notice to the holders of the Warrants that the Warrants will expire at 4:00 p.m. ( Vancouver time) on the 30th day following the giving of notice unless exercised by the holders prior to such date. Upon receipt of such notice, the holders of the Warrants will have 30 days to exercise their Warrants. Any Warrants which remain unexercised at 4:00 p.m. ( Vancouver time) on the 30th day following the giving of such notice will expire at that time.

Two directors of the Company subscribed in the Private Placement for an aggregate of 137,736 units for gross proceeds of $73,000 .  Each transaction with the directors constitutes a "related party transaction" as defined under Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions (" MI 61-101 "). The Company is relying on the exemptions under section 5.5(a) and section 5.7(1)(b) from the formal valuation and minority shareholder approval requirements of MI 61-101, as the fair market value of the Private Placement, insofar as it involves related parties, does not exceed 25% of the Company's market capitalization (as determined under MI 61-101). The Company did not file a material change report at least 21 days before the closing of the private placement as the details of the private placement and the participation therein by related parties of the Company were not settled until shortly prior to closing and the Company wished to close on an expedited basis for sound business reasons.

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 Q4 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. 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

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.

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; 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: closing of the second trance of the financing and the Sprott Agreement, TSXV acceptance of the PIF, final TSXV approval of the financing, 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.

Cision View original content to download multimedia: https://www.prnewswire.com/news-releases/south-star-battery-metals-announces-closing-of-2-3-million-of-the-non-brokered-private-placement-and-phase-1-construction-updates-301680761.html

SOURCE South Star Battery Metals Corp.

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