STS:CC - South Star Battery Metals to Spend $80 Million on Phased Graphite Mine Construction in Brazil

2023-05-24 11:48:21 ET

South Star Battery Metals' (TSXV:STS,OTCQB:STSBF) phased approach to bringing its graphite mine to production in Brazil will see the company spend a total of nearly $80 million over the next five years, according to CEO Richard Pearce.

“Industrial metal is something (where) commercial relations have to be developed over time. So we’re stepping into it before we really have to spend oodles of cash,” he said. “So Phase 1 is about a $10 million CAPEX, Phase 2 is about C$37 million or C$35 million CAPEX and then Phase 3 is about a C$30 million CAPEX. So in the next four to five years, we’ll be spending C$80 million to spin that up to 50,000 tonnes of concentrate per annum.”

Phase 1 construction of South Star’s Santa Cruz graphite project in Brazil began in June 2022, and the project is expected to be operational by the end of 2023, with cashflow commencing in January 2024.

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