South Star Battery Metals Corp. (“South Star” or the “Company”) (TSXV: STS) (OTCQB: STSBF), announces that it intends to complete a non-brokered private placement of units (the “Private Placement” or the “Offering”) to raise approximately C$1,200,000. The closing of the Offering is subject to customary conditions, including the receipt of all necessary approvals, including the approval of the TSX Venture Exchange (the “TSXV”).
The Private Placement will consist of 10,909,091 units priced at C$0.11 per unit (the “Units”). Each Unit will consist of one (1) common share and one (1) common share purchase warrant (the “Warrants”). Each Warrant will entitle the holder to purchase one additional common share of the Company at an exercise price of C$0.15 per common share for a period of three years from the date of issue.
The securities will be subject to a four-month hold period from the date of closing and approval by the TSXV. The Private Placement is subject to a 15% over-allotment option and to an acceleration clause. See below for further details.
Net proceeds from the Private Placement will be used for land acquisition, advanced materials sample preparation, commercial agreements, project finance and general working capital requirements for the Company.
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$0.50 on 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.
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South Star Battery Metals Announces Non-Brokered Private Placement, VANCOUVER, BC, Octiber 15, 2021
