South Star Battery Metals Announces Santa Cruz Graphite Mine Phase 1 Construction and Licensing Update

South Star Battery Metals Announces Santa Cruz Graphite Mine Phase 1 Construction and Licensing Update

Highlights:

  • Santa Cruz Phase 1 construction has zero lost time accidents through end of July.
  • Santa Cruz Phase 1 construction is on budget and on schedule with commercial production planned for the EOY 2023.
  • All main construction contracts have been executed.
  • Overall construction advance at 68% complete.
  • Manufacturing of equipment at 80% complete.
  • Foundations & concrete work on schedule to be substantially completed in September.
  • Initial comments from Brazil's National Mining Agency for the definitive mining concessions for Santa Cruz's Phases 1, 2 & 3 have been received & responses returned.
  • The biannual environmental condition precedent report associated with Santa Cruz's environmental license has been submitted.

South Star Battery Metals Corp. ("South Star" or the "Company") (TSXV:STS)(OTCQB:STSBF), is pleased to announce a Phase 1 construction update through the end of July for the Company's flagship Santa Cruz Graphite Mine in Bahia Brazil, as well as providing a permitting and licensing update for Phases 2 and 3 operations

Richard Pearce, CEO of South Star commented, "We are extremely pleased with the construction progress through the end July on the Santa Cruz Phase 1 plant and mine installations. The build continues on budget and on schedule, and we are very proud of our ongoing safety record. The team will continue to work hard and focus on our ongoing commitment to safe, responsible operations. Significant progress has been made on the concrete and foundation work, which should be substantially completed in next couple weeks. Equipment manufacturing is on schedule and should be largely wrapped up in next 6 weeks, with all major equipment delivered to the mine. The electrical and mechanical contractor is in the process of mobilizing. We are firmly on track to be commissioning Santa Cruz in November and starting commercial production by EOY 2023. Notably, the start of commercial production at Santa Cruz will be a significant milestone achievement marking the first new graphite producer in the Americas since 1996. Additionally, our BamaStar projected is expected to commence vertically integrated production in 2027."

Santa Cruz Construction and Licensing Update

Construction through the end of July 2023 is on schedule and on budget for Phase 1 commercial production planned for the EOY 2023. South Star's Q3 2023 primary work programs include:

  • Civil construction, foundations, and retention walls for the plant area;
  • Structural, electrical and mechanical assemblies;
  • Electrical substation and internal electrical distribution network;
  • Laboratory, cafeteria, changing rooms, warehouse, shops and other appurtenant support structures; and
  • Delivery of 100% of the major equipment.

Initial comments from Brazil's National Mining Agency have been received and responded to for the majority of the final mining concessions incorporating a phased approach to Phases 1, 2 and 3 and up to 50,000 tonnes per year of concentrate production. The biannual condition precedents report associated with Santa Cruz's environmental license has also been submitted to the environmental regulatory agency. The Company expects to receive the definitive mining licenses and environmental permits for Phases 1, 2 and 3 in early Q1 2024.

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 (> 30 tonnes) 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 fully funded for Phase 1, and the 12-month construction and commissioning are underway. Santa Cruz will be the first new graphite production in the Americas since 1996 with Phase 1 commercial production projected in Q4 2023. Phase 2 production (25,000 tpa) is partially funded and planned for 2026, while Phase 3 (50,000 tpa) is scheduled for 2028.

South Star's second project in the development pipeline is strategically located in Alabama in the center of a developing electric vehicle, aerospace, and defense hub in the southeastern United States. The BamaStar Project is a historic mine active during World Wars I & II. A NI43-101 technical report with the maiden resource estimate has been filed on SEDAR. Trenching, phase 1 drilling, sampling, analysis, and preliminary metallurgical testing have been completed. The testing indicates a traditional crush/grind/flotation concentration circuit that achieved grades of approximately 94-97% Cg 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 https://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
Email: invest@southstarbatterymetals.com
+1 (604) 706-0212
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: 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.

SOURCE: South Star Battery Metals Corp.



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South Star Announces Additional Sales of Natural Flake Graphite Concentrate to U.S. Customer

South Star Announces Additional Sales of Natural Flake Graphite Concentrate to U.S. Customer

Advancing the First New Natural-Flake Graphite Mine in the Americas this Century

 

South Star Battery Metals CORP. ("South Star" or the "Company") (TSXV:STS)(OTCQB:STSBF) is pleased to announce that, further to the Company's May 6, 2024 announcement ("South Star Battery Metals Announces the First Sale of Natural Flake Graphite Concentrate from its Santa Cruz Graphite Mine in Brazil") and its August 1, 2024 announcement ("South Star Announces Successful Product Qualification and 100-Tonne Sale of Natural Flake Graphite Concentrate to U.S. Customer"), South Star has executed another binding commercial sales agreement (the "Agreement") for an initial 40 tonnes (more than 88,000 pounds) of natural-flake graphite concentrate from the Company's flagship Santa Cruz Graphite Mine("Santa Cruz"), located in northeastern Brazil's Bahia state. This most recent sales Agreement was formally executed with a prominent American industrial graphite customer (the "U.S. Client

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South Star Announces Successful Product Qualification and 100-Tonne Sale of Natural Flake Graphite Concentrate to U.S. Customer

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South Star advancing the first new natural-flake graphite mine in the Americas this century.

 

South Star Battery Metals CORP. ("South Star" or the "Company") (TSXV:STS)(OTCQB:STSBF) is pleased to announce that further to the Company's May 6, 2024 announcement ("South Star Battery Metals Announces the First Sale of Natural Flake Graphite Concentrate from its Santa Cruz Graphite Mine in Brazil"), South Star has executed another binding commercial sales agreement (the "Agreement") for the initial purchase of 100 tonnes (more than 220,000 pounds) of graphite concentrate from the Company's flagship Santa Cruz Graphite Mine ("Santa Cruz"), located in northeastern Brazil's Bahia state

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South Star Announces Substantial Completion and Commissioning of the Santa Cruz Phase 1 Graphite Mine in Brazil

South Star Announces Substantial Completion and Commissioning of the Santa Cruz Phase 1 Graphite Mine in Brazil

Highlights

  • Mine prestrip, preliminary dump foundations and ramps are complete, and approximately 50,000 tonnes of ore is being placed on the ore pad by end of August for commissioning and initial operations.

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South Star Battery Metals Announces Successful Metallurgical Results for its BamaStar Graphite Project in Alabama, USA

South Star Battery Metals Announces Successful Metallurgical Results for its BamaStar Graphite Project in Alabama, USA

Highlights:

  • Metallurgical work completed on representative oxide, transition and fresh rock composite samples ranging in grade from 2.36% Cg for fresh rock to 3.04% Cg for oxide samples.
  • Bond abrasion and work index testing show low to medium abrasion and low energy requirements.
  • Open circuit flotation tests resulted in excellent concentrates grade ranging from 94.4% Cg for fresh rock materials to 99.5% Cg for oxide samples with a simple flowsheet that maximizes graphite recovery and minimizes flake degradation.
  • The open circuit graphite recoveries were high, ranging between 87.5% and 91.5%.
  • Given the superior response of the oxide and transitional material, the next phase of work will investigate mining pit design to maximize processing of oxide and transitional material early in the project life and postpone mining of the fresh ore in order to decrease initial CAPEX, lower OPEX and target improved project economics.
  • The NI43-101 Preliminary Economic Assessment results for BamaStar are scheduled for release in August 2024.

South Star Battery Metals Corp. ("South Star" or the "Company") (TSXV:STS)(OTCQB:STSBF) is pleased to announce successful results from the ongoing metallurgical process development program for the Bama Star graphite project in Alabama, USA

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South Star Battery Metals Announces Land Purchase, Construction Update, and the Approval of the Definitive Mining Licenses For Phases 1, 2 & 3 for its Santa Cruz Graphite Mine in Brazil

South Star Battery Metals Announces Land Purchase, Construction Update, and the Approval of the Definitive Mining Licenses For Phases 1, 2 & 3 for its Santa Cruz Graphite Mine in Brazil

Santa Cruz Graphite Mine Highlights:

  • Final payment of land purchase for Phase 1 Plant and Operations.
  • Approval of the Definitive Mining Licenses For Phases 1, 2 & 3. All mining and environmental licenses/permits are approved and in-hand for the future phased, modular expansion of Santa Cruz graphite production up to 50,000 tonnes/year.
  • Phase 1 construction is on schedule for substantial completion by the end of June 2024 followed by a 6-week plant commissioning and ramp-up period. Commercial sales are planned to start in September 2024. Name plate production capacity is expected to be reached in Q4 2024.

South Star Battery Metals Corp. ("South Star" or the "Company") (TSXV:STS)(OTCQB:STSBF) is pleased to announce the final payment of the previously announced (Aug. 02, 2022) land purchase required for construction of the Phase 1 mine and plant facilities. The farm totals approximately 325 hectares and is where all the plant facilities, mine and infrastructure installations are required for the first three years of operations at its Santa Cruz Graphite Project in Bahia, Brazil

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Altech Batteries Ltd  Cerenergy Battery Project Funding Progressing Well

Altech Batteries Ltd Cerenergy Battery Project Funding Progressing Well

Perth, Australia (ABN Newswire) - Altech Batteries Limited (ASX:ATC,OTC:ALTHF) (FRA:A3Y) (OTCMKTS:ALTHF) is pleased to announce an update on funding of the CERENERGY(R) sodium-chloride solid-state battery project in Saxony, Germany.

DEBT PROCESS

As previously mentioned, Altech has engaged ten commercial banks and two venture debt funds in the first round of financing discussions, receiving largely positive initial feedback. Based on this feedback, the Company has selected a preferred financial institution- a European bank with a proven track record in providing debt funding for technology-driven projects, particularly those within the innovation sector.

Although the mandate has not yet been formally executed, Altech intends to make an official announcement once this step is complete.

Meanwhile, the bank's commercial and technical teams have been diligently conducting a comprehensive review of the Cerenergy projects and its technology. The technical due diligence process is critical for ensuring that the project meets the bank's financing and risk criteria. As part of this process the onsite Altech experts are in detailed discussions with the bank's representative. The banks have visited Dresden and the Fraunhofer testing facilities and visit Hermsdorf, Germany where the prototype production is located in the coming weeks, which will be a key step in concluding the technical evaluation.

In parallel with these efforts, Altech is progressing discussions for securing a federal government guarantee, which would further strengthen its ability to secure the necessary debt funding for the project. Officials from the Ministry of Finance have already been briefed on the initiative, and the due diligence process for the application is actively underway. This federal guarantee will serve as an underwriter and therewith derisk any debt funding for the project substantially.

EQUITY FUNDING

In parallel with ongoing debt financing efforts, the Group has engaged several equity advisers to assist in securing the equity component of the project's funding package. As part of this strategy, Altech plans to divest a minority interest in the project to one or two strategic investors. This partial divestment is intended to attract investors who can contribute not only capital, but also strategic value, aligning with the CERENERGY(R) project's long-term goals of growth and sustainability.

The Group on one hand is specifically targeting large utility companies, data centre operators, investment funds, and corporations that are deeply committed to the green energy transition and on the other hand industrial partners with access and know-how and resources relevant to Cerenergy battery production, implementation or market access. These potential partners are seen as ideal due to their strong alignment with the project's sustainable energy focus and their ability to provide significant financial support. Progress in equity discussions has been promising, with several Non-Disclosure Agreements (NDAs) signed, enabling deeper engagement with prospective investors. Additionally, draft term sheets have been circulated to interested parties, outlining the key terms and conditions for investment. These documents provide a foundation for negotiations and facilitate more detailed discussions around the equity stake and partnership structure.

The decision to divest part of the project is strategically aimed at easing the Company's financial burden while bringing in experienced partners who can contribute to the project's success. By securing both equity and debt financing, Altech aims to finalize the full funding package, ensuring the timely construction and commissioning of the CERENERGY(R) battery plant. Moving forward, the focus will be on advancing these discussions and converting interest into formal commitments, which are critical for the project's progression.

GRANT APPLICATIONS

Altech has been actively applying for various grants offered by the State of Saxony, Federal Government of Germany, and the European Union. The State of Saxony and Brandenburg, along with the European Union, offer substantial support for renewable energy projects, including grants aimed at converting lignite coal to renewable energy sources. These grants are part of broader efforts to transition regions dependent on fossil fuels toward sustainable energy solutions. Altech's site, located in these areas, stands to benefit from various funding programs designed to support clean energy projects, including EU grants for energy transformation and innovation. Altech has applied for several of these grants to advance its CERENERGY(R) project, securing essential financial backing for technology development, high-tech industries, expert employment and infrastructure upgrades.

OFFTAKE ARRANGEMENTS

Altech has secured three key Offtake Letters of Intent (LOIs) for 100% of its CERENERGY(R) production.

1. Zweckverband Industriepark Schwarze Pumpe (ZISP): An agreement was signed on 13 September 2024 for ZISP to purchase 30 MWh of energy storage capacity annually, consisting of 1MWh GridPacks, for the first five years of production. The purchase is contingent on performance tests and battery specifications meeting customer requirements.

2. Referenzkraftwerk Lausitz GmbH (RefLau): A second LOI was executed with RefLau, a joint venture between Enertrag SE and Energiequelle GmbH. RefLau will buy 30 MWh of CERENERGY(R) storage n the first year, increasing to 32 MWh annually for the next four years. Additionally, Altech will purchase green electricity for its planned production plant.

3. Axsol GmbH: A third LOI was signed with Axsol, a leading renewable energy solutions provider. Axsol will exclusively distribute CERENERGY(R) batteries to the Western defense industry, facilitating early market entry and sales. These agreements are crucial for financing and advancing the CERENERGY(R) project.

 

About Altech Batteries Ltd:  

Altech Batteries Limited (ASX:ATC,OTC:ALTHF) (FRA:A3Y) is a specialty battery technology company that has a joint venture agreement with world leading German battery institute Fraunhofer IKTS ("Fraunhofer") to commercialise the revolutionary CERENERGY(R) Sodium Alumina Solid State (SAS) Battery. CERENERGY(R) batteries are the game-changing alternative to lithium-ion batteries. CERENERGY(R) batteries are fire and explosion-proof; have a life span of more than 15 years and operate in extreme cold and desert climates. The battery technology uses table salt and is lithium-free; cobalt-free; graphite-free; and copper-free, eliminating exposure to critical metal price rises and supply chain concerns.

The joint venture is commercialising its CERENERGY(R) battery, with plans to construct a 100MWh production facility on Altech's land in Saxony, Germany. The facility intends to produce CERENERGY(R) battery modules to provide grid storage solutions to the market.

 

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