South Star Battery Metals Upsizes Private Placement and Closes First Tranche

South Star Battery Metals Corp. has announced an upsizing of its non-brokered private placement of common shares from CAD 4 million to CAD 4.8 million, driven by strong investor demand. The offering consists of up to 32 million shares priced at CAD 0.15 each. The company simultaneously closed the first tranche of this offering, issuing approximately 15.4 million shares for gross proceeds of CAD 2.312 million. This initial closing is subject to TSX Venture Exchange approval, with the final tranche expected to close by May 29, 2026. Notably, all shares in the first tranche were purchased by a fund controlled by Tiago Cunha, the Company’s interim CEO and President, resulting in him holding 38.23% of outstanding shares. This insider participation is classified as a related party transaction under Multilateral Instrument 61-101, though the company relies on specific exemptions. Net proceeds from the offering will fund the expansion of the Santa Cruz graphite operation toward a 10,000-tonne annual production capacity, along with general working capital and administrative expenses.