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VANCOUVER - South Star Battery Metals Corp. (TSXV:STS) (OTCQB:STSBF), currently trading at $4.95, has completed an initial tranche of its non-brokered private placement, raising US$302,610 (CA$415,263.45), according to a company press release. InvestingPro analysis indicates the stock is slightly undervalued, with a GOOD overall financial health score of 2.57.
The first tranche consists of 1,375,500 units priced at US$0.22 (CA$0.3019) per unit, with each unit comprising one common share and one purchase warrant. The warrants are exercisable for five years at US$0.22 per share and include an acceleration clause if the company’s share price exceeds CA$1.25 for ten consecutive trading days.
Proceeds will fund development, production, and general working capital requirements. The TSX Venture Exchange has extended the closing deadline for the private placement to August 22, 2025.
A company insider participated in the placement for US$220,000, acquiring 1,000,000 units. South Star has also secured bridge loans totaling US$450,000, with US$450,000 provided by directors and officers. These unsecured loans carry a 12% annual interest rate and mature on January 7, 2026.
The bridge loans are intended to provide short-term funding while the company works to close subsequent tranches of the private placement. They can be repaid early without penalty and include acceleration provisions tied to future financing events.
South Star’s primary asset is the Santa Cruz Graphite Project in Brazil, which began commercial production with first sales shipped in May 2025. The company is also developing the BamaStar Project in Alabama, which includes a historic mine and plans for vertically integrated production facilities.
All securities issued in the private placement are subject to a four-month hold period, and the transactions remain subject to final regulatory approval.
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