VANCOUVER, British Columbia, June 09, 2026 (GLOBE NEWSWIRE) -- South Star Battery Metals Corp. ("South Star" or the "Company") (TSXV:STS) (OTCQB:STSBF) is pleased to announce that, further to its news releases dated May 6, 2026 and May 15, 2026, the Company has closed the second and final tranche of its previously announced non-brokered private placement of common shares (the "Share Offering"), issuing 16,587,667 common shares (the "Shares"), at a price of CAD $0.15 per Share for gross proceeds of CAD $2,488,000 (the "Final Tranche"). Including the first tranche which closed on May 15, 2026, the Company has raised total gross proceeds of CAD $4,800,000 under the Share Offering.
The Shares issued under the Final Tranche are subject to a statutory hold period of four months and one day from the date of issuance in accordance with applicable securities laws. Net proceeds from the Share Offering will 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.
In connection with the Final Tranche, the Company paid aggregate finder's fees consisting of CAD $182,981 in cash and 1,474,567 Shares issued at a deemed price of CAD $0.15 per Share to A8 Capital Advisors Latin America Ltd.
Ace Global Special Opportunities BRL Fundo De Investimento Financeiro EM Acoes, a fund directed and controlled by Tiago Cunha, the Interim Chief Executive Officer, President and director of the Company, purchased 210,136 Shares in the Final tranche, resulting in Tiago Cunha having direction and control of 29.67% of the Company's issued and outstanding shares. Priscila Costa Lima, a director of the Company also purchased 200,000 Shares in the Final tranche, resulting in Priscila Costa Lima having direction and control of less than 1% of the Company's issued and outstanding shares. Such insider participation constitutes a "related party transaction" under Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Company ...
