South Star Announces Closing of Second Tranche of Non-Brokered Private Placement of Units

Executive Summary

• South Star Battery Metals Corp. closed the second tranche of its non‑brokered private placement, issuing 16,214,234 units at C$0.15 per unit for gross proceeds of C$2.432 million (≈US$1.75 million).
• The total amount raised to date under the offering is now C$3.260 million (≈US$2.35 million).
• Net proceeds are earmarked for exploration and development, general & administrative expenses, and working capital; additional tranches are expected in the coming weeks.

Key Details

• Units Issued: 16,214,234 units at C$0.15 each → Gross Proceeds: C$2,432,135 (≈US$1,749,737).
• Unit Composition: 1 common share + 1 common‑share purchase warrant per unit.
• Warrant Terms: Right to acquire one additional share at C$0.20 for five years; acceleration possible if TSX Venture Exchange price ≥ C$0.40 for ten consecutive trading days after four months, with 30‑day notice.
• Statutory Hold Period: Four months and one day from issuance.
• Use of Proceeds: Exploration & development activities, general & administrative expenses, working capital.
• Regulatory Condition: Second tranche remains subject to final TSX Venture Exchange approval.
• Future Tranches: Company anticipates closing one or more additional tranches in the coming weeks, subject to customary conditions and exchange approvals.
• Total Raised (both tranches): C$3,260,362 (≈US$2,345,584).
• Finder’s Fees Paid: C$10,530 (≈US$7,576) in cash for this tranche.
• Shareholder Meeting: Planned around 17 Nov 2025 to seek approval for interim CEO Tiago Cunha to become a control person; upon approval, Cunha will purchase an additional 12,342,088 units (~C$2.085 million).
• Insider Participation: Insiders bought 4,226,667 units in the second tranche – treated as a “related party transaction” under MI 61‑101, relying on exemption because fair market value < 25 % of market cap.

Notable Quotes

(No direct quotes were provided in the release.)