South Star Battery Metals Announces Letter of Intent to Enter into Binding 5-Year Offtake Agreement with Graphex Group Ltd
The concentrate tonnages associated with this Offtake Agreement will be directed towards the uncoated and coated spherical graphite (SPG) markets used in Lithium-ion batteries ("LiB"). Graphex is a global leader in the industry and has been proficient in producing spherical graphite anode material for Li-ion batteries in Electric Vehicles (EVs) and other use cases in Jixi, China since 2008 and transacting commercially since 2013.
Richard Pearce, CEO of South Star, said, "We are pleased to be forming this strategic partnership with Graphex and look at this as the start of a long-term relationship. South Star has high-quality, scalable graphite assets that are coming on-line in the very near-term, and we will be the first new graphite production in the Americas in over a decade. Our concentrates have been tested for LiB applications and performed exceptionally well. Graphex has been producing uncoated and coated SPG for years in China, has deep commercial relationships in this sector and is expanding into new strategic jurisdictions such as North America. We look forward to partnering with Graphex to provide high-quality products soon for clients in strategic locations around the world. Secure supply chains are the key to the world's ability to execute on the exciting energy transition revolution underway, and South Star is pleased to be part of this paradigm shift."
"We are excited to sign this LOI and move toward this strategic offtake agreement with South Star at this critical time in the evolution of EV battery supply chains," said John DeMaio, President of the Graphene Division of Graphex. "With demand for natural graphite anode material predicted to significantly increase year over year to keep pace with EV projections, new sources of raw materials from diverse geographical regions will be essential for stable, predictable supply chains. We see this agreement with South Star as a key element in our global expansion and diversification strategy and we look forward to the prospect of processing graphite concentrate from South Star's resources in Brazil and the U.S into high quality anode material for use in the EV battery ecosystem."
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 is fully licensed and construction ready for Phase 1 operations with at-surface mineralization in friable materials, and successful large-scale pilot-plant testing (>30t) 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 carrying its development plan towards Phase 1 production projected in Q1 2023, pending financing.
South Star's next project in the pipeline is a development project in Alabama located in the middle of a developing electric vehicle, aerospace and defence hub in the southeastern United States. The Project is a historic mine active during World Wars I & II. Trenching, sampling, analysis and preliminary metallurgic testing has been completed. The testing indicated a traditional crush/grind/flotation concentration circuit achieved grades of approximately 96-97% with approximately 86% recoveries. and South Star is executing on it's 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 http://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.
On behalf of the Board,
Mr. Richard Pearce
Chief Executive Officer
For additional information, please contact:
South Star Investor Relations (Canada IR)
RBMG - RB Milestone Group LLC (IR US)
Trevor Brucato, Managing Director
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This news release and the Updated Technical Report contain references to inferred resources. The Report is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves.
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