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VANCOUVER, BC / ACCESS Newswire / March 4, 2025 / South Star Battery Metals Corp. ("South Star" or the "Company") (TSXV:STS)(OTCQB:STSBF), is pleased to announce that it has completed a Memorandum of Understanding ("MOU") with the University of Alabama at Tuscaloosa ("UA") on behalf of its Alabama Mobility and Power Center ("AMP") to develop a binding Definitive Partnership Agreement ("Agreement") to support a battery anode materials program in the United States consisting of the following phases:
R&D Development
Pilot Demonstration
Commercial Demonstration
Commercial-Scale Manufacturing
South Star would be the primary supplier of natural-flake graphite concentrate ("NFGC") in furtherance of the Agreements objectives, and AMP's internal/house reference natural-flake anode graphite ("AG") material. The MOU establishes the conceptual framework for the Agreement and allows for a 45-day schedule to negotiate the definitive, binding agreement.
Richard Pearce, CEO of South Star commented, "We are excited to announce this important strategic initiative with our UA / AMP partners to advance a concrete, integrated solution to developing high-quality battery anode testing, development and manufacturing expertise in the United States with world-class expertise and facilities. UA / AMP and the State of Alabama are creating a unique critical materials ecosystem to support the rapid advancement of a resilient, more diversified technology and battery supply chain. South Star is honored to play a role with our partners in developing truly unique critical materials and technology platforms essential for growth and stability in the coming decades. South Star is committed to a partnering approach to developing these facilities with a proven, technically robust framework, a quick-to-market strategy, and a commercially robust business plan."
Mr. Pearce continued, "Santa Cruz, the first new graphite production in the Americas since 1996, is ramping up commercial production in Brazil and is a fully licensed, scalable, world-class asset in a proven flake graphite-producing district. We believe that BamaStar is one of a very select handful of flake graphite assets in North America that is scalable, financeable, and permittable. It is a project that checks all the boxes with strong techno-economics (See Nov. 14, 2024 Press Release), U.S Department of Defense funding (See Nov. 29, 2023 Press Release), great support in the state, reliable power, nearby workforce, strong expansion potential, excellent infrastructure and logistics, as well as located near numerous potential clients in the heart of one of the most critical aerospace, defense, and automobile corridors in the contiguous United States. We look forward to working with UA / AMP on what we believe will be a transformational initiative essential for graphite materials and anode solutions for the industrial, defense, stationary storage and energy transition sectors."
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About South Star Battery Metals Corp.
South Star 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 has at-surface mineralization in friable materials, and successful large-scale pilot-plant testing (> 30 tonnes) has been completed. The results of the testing show that approximately 65% of graphite concentrate is +80 mesh with good recoveries and 95%-99% graphitic carbon ("Cg"). With excellent infrastructure and logistics, South Star Phase 1 is ramping up commercial production in 2025. Santa Cruz Phase 1 commercial production has a nameplate capacity of 12,000 tpy and is the first new graphite production in the Americas since 1996. Phase 2 production (25,000 tpy) is partially funded and planned for 2026, while Phase 3 (50,000 tpy) is scheduled for 2028.
South Star's second project in the development pipeline is strategically located in Alabama, U.S.A. in the center of a developing electric-vehicle, aerospace, and defense hub in the southeastern United States. The BamaStar Project includes a historic mine active during the First and Second World Wars. A NI 43-101 Preliminary Economic Assessment was filed on SEDAR+ in November 2024. Trenching, Phase 1 drilling, sampling, analysis, and preliminary metallurgical testing have been completed. The testing included a traditional crush/grind/flotation concentration circuit that achieved grades of approximately 94-99% Cg with approximately 90% recoveries. The vertically integrated production facilities include a mine and industrial concentrator in Coosa County, AL and a downstream value-add plant in Mobile, AL, which will be upgrading natural flake graphite concentrates from both Santa Cruz and BamaStar mines. South Star is executing on its 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.
About University of Alabama - Alabama Mobility and Power Center
The Alabama Mobility and Power (AMP) Center is a public-private partnership between The University of Alabama, Alabama Power Company, and Mercedes-Benz U.S. International, Inc. Focused on advancing battery technology, charging infrastructure, and power delivery, the AMP Center drives research, workforce development, and economic growth in sustainable mobility. By fostering collaboration between industry, academia, and government, the AMP Center is positioning Alabama as a leader in the EV ecosystem, supporting innovation and attracting companies across the battery supply chain. To learn more, please visit AMP's website at https://amp.ua.edu/.
This news release has been reviewed and approved for South Star by Richard Pearce, P.E., a "Qualified Person" under National Instrument 43-101 and President and CEO of South Star Battery Metals Corp.
On behalf of the South Star Board of Directors,
MR. RICHARD L. PEARCE,
President & Chief Executive Officer
For additional information, please contact:
South Star Investor Relations
Email: invest@southstarbatterymetals.com
Phone: +1 (604) 706-0212
Website: www.southstarbatterymetals.com
Twitter: https://twitter.com/southstarbm
Facebook: https://www.facebook.com/southstarbatterymetals
LinkedIn: https://www.linkedin.com/company/southstarbatterymetals/
YouTube: South Star Battery Metals - YouTube
CAUTIONARY STATEMENT
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.
Forward-Looking Information
This press release contains "forward-looking statements" within the meaning of applicable securities legislation. Forward-looking statements relate to information that is based on assumptions of management, forecasts of future results, and estimates of amounts not yet determinable. Any statements that express predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance are not statements of historical fact and may be "forward-looking statements". Forward-looking statements in this press release include, but are not limited to statements regarding production and scaling of operations at Santa Cruz, as well as advancing the Alabama project, and the Company's plans and expectations.
Forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements, including, without limitation: risks related to failure to obtain adequate financing on a timely basis and on acceptable terms; risks related to the outcome of legal proceedings; political and regulatory risks associated with mining and exploration; risks related to the maintenance of stock exchange listings; risks related to environmental regulation and liability; the potential for delays in exploration or development activities or the completion of feasibility studies; the uncertainty of profitability; risks and uncertainties relating to the interpretation of drill results, the geology, grade and continuity of mineral deposits; risks related to the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses; results of prefeasibility and feasibility studies, and the possibility that future exploration, development or mining results will not be consistent with the Company's expectations; risks related to commodity price fluctuations; and other risks and uncertainties related to the Company's prospects, properties and business detailed elsewhere in the Company's disclosure record. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements. Investors are cautioned against attributing undue certainty to forward-looking statements. These forward-looking statements are made as of the date hereof and the Company does not assume any obligation to update or revise them to reflect new events or circumstances. Actual events or results could differ materially from the Company's expectations or projections.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
SOURCE: South Star Battery Metals Corp.
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