STSBF - South Star Mining Announces Approval of the Mining License for the Santa Cruz Graphite Project
(TheNewswire)
Toronto, ON – TheNewswire - January 6, 2021 – South Star Mining Corp. ( ‘South Star ’ or ‘the Company’ ) (TSXV: STS ) (OTC:STSBF)is pleased to announce the approval of trialmining license for a period of 3 years for the Phase 1 Pilot PlantOperations (5,000 tpy of concentrate) for the Santa Cruz GraphiteProject (‘the Project’) in Bahia, Brazil. As announced onOctober 5, 2020, the environmental license for Phase 1 was renewed fora period of 4 years in October of 2020. With the approval of themining license, the Project is now fully licensed and can proceed tothe Phase 1 construction, commissioning and operations.
The Company is advancing with conversations regardingproject financing, and as previously announced in October of 2020, theBrazilian Development Bank (BNB) has pre-approved C$7.5M of debtfinancing. BNB is currently reviewing the technical documents andadvancing with the Project credit analysis.
South Star CEO RichardPearce commented: “We are extremely excitedabout the approval of the final permitting hurdle for the Phase 1operations of the Project, and we continue thedrive towards 2021 production. We are now in a position to advancetowards construction, and the battery metals market appears to befurther improving with increasing demand for high-quality concentrateworldwide. South Star can become a provider of high-quality,large-flake Brazilian graphite concentrate for many yearsahead.
With the Phase 1 permitting requirements behind us, ournext goals will be to focus on arranging an off-take agreement andsecuring the financing package for the Project construction. The finaldesign package for construction along with selection of the firmresponsible for the Engineering, Procurement and ConstructionManagement (EPCM) is estimated to be finalized in March of 2021. Iwould like to thank our current shareholders and all the Projectstakeholders for their continued support and look forward to anexciting 2021.”
South Star Mining Corp. (TSX.V: STS) is focused on theselective acquisition and development of near-term mine productionprojects in Brazil to maximize shareholder value. STS has anexperienced executive team with a strong history of discovering,developing, building and operating profitable mines in Brazil.
The Santa Cruz Graphite Project is located in SouthernBahia, the third largest graphite producing region in the world withover 70 years of continuous mining. The Project has at-surfacemineralization in friable materials, and successful large-scale pilotplant testing (>30t) has been completed. The results of thetesting show approximately 65% of Cg concentrate is +80 mesh with goodrecoveries and 95-99% Cg. With excellentinfrastructure and logistics, South Star is planning the commissioningof the 5,000 tonne per year pilot plant for the end of 2021.
To learn more, please visit the Company website at http://www.southstarmining.ca .
On behalf of the Board,
Mr. Richard Pearce
Chief Executive Officer
For additional information, pleasecontact:
CHF Capital Markets
Cathy Hume, CEO
Phone: 416-868-1079 x231
Email: cathy@chfir.com
Mr. Dave McMillan
Chairman
Email: davemc@telus.net
CAUTIONARY STATEMENT
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Forward-Looking Information
The information contained hereincontains "forward-looking statements" within the meaning ofapplicable securities legislation. Forward-looking statements relateto information that is based on assumptions of management, forecastsof future results, and estimates of amounts not yet determinable. Anystatements that express predictions, expectations, beliefs, plans,projections, objectives, assumptions or future events or performanceare not statements of historical fact and may be "forward-lookingstatements."
Forward-looking statements aresubject to a variety of risks and uncertainties which could causeactual events or results to differ from those reflected in theforward-looking statements, including, without limitation: risksrelated to failure to obtain adequate financing on a timely basis andon acceptable terms; risks related to the outcome of legalproceedings; political and regulatory risks associated with mining andexploration; risks related to the maintenance of stock exchangelistings; risks related to environmental regulation and liability; thepotential for delays in exploration or development activities or thecompletion of feasibility studies; the uncertainty of profitability;risks and uncertainties relating to the interpretation of drillresults, the geology, grade and continuity of mineral deposits; risksrelated to the inherent uncertainty of production and cost estimatesand the potential for unexpected costs and expenses; results ofprefeasibility and feasibility studies, and the possibility thatfuture exploration, development or mining results will not beconsistent with the Company's expectations; risks related to goldprice and other commodity price fluctuations; and other risks anduncertainties related to the Company's prospects, properties andbusiness detailed elsewhere in the Company's disclosure record. Shouldone or more of these risks and uncertainties materialize, or shouldunderlying assumptions prove incorrect, actual results may varymaterially from those described in forward-looking statements.Investors are cautioned against attributing undue certainty toforward-looking statements. These forward-looking statements are madeas of the date hereof and the Company does not assume any obligationto update or revise them to reflect new events or circumstances.Actual events or results could differ materially from the Company'sexpectations or projections.
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