STSBF - South Star Mining Corp. Announces an Offtake Agreement
(TheNewswire)
Toronto, ON – TheNewswire - May 10, 2021 – South Star Mining Corp. ( “South Star ” or “the Company” ) (TSXV: STS ) (OTC:STSBF) is pleased to announcethat it has entered into its first Memorandum of Understanding(“Agreement”) for 4,000 tonnes of natural flake graphite for aperiod of four years for the Santa Cruz Graphite Project(“Project”). The strategic offtake was signed on May 3, 2021 witha European industrial specialist (“Partner”) for high-qualitygraphite products including refractories, flame retardants,conductivity materials and lubricants. Terms and conditions of theAgreement are confidential for competitive market conditions.
Richard Pearce, President and CEO of South Star,commented: “I am extremely pleased to announce the signing of ourfirst of many offtake agreements, and this is another importantachievement in moving the Project from development into production in2022. We are well on our way. We look forward to developing along-term relationship with our Partner, and we are excited abouthaving a strong presence in Europe. The Project is very scalable, andwe want to be a consistent, long-term provider of high-qualitygraphite products for decades to come. Our OPEX is projected to be inthe first quartile of costs, and we anticipate being very competitivein a broad range of sectors and markets. We continue to explore otherpossible offtake agreements and partnerships and look forward toupdating the markets on the developments as details become available.Brick by brick we are building this Company into the first newoperation in continuous commercial production in the Americas in morethan a decade.”
South Star Mining Corp. is focused on the selectiveacquisition and development of near-term production projects inBrazil. South Star is driven to create fundamental value in thebattery metals sector for clients and investors with real projectsthat have strong intrinsic financial and operating metrics, and thatcan be profitable throughout the resource cycle. South Star has anexperienced executive team with a strong history of discovering,developing, building and operating profitable mines in Brazil.
The Santa Cruz Graphite Project, located in SouthernBahia, is the first of a series of battery metals projects that willbe put into production. Brazil is the second-largestgraphite-producing region in the world with more than 80 years ofcontinuous mining. The Project has at-surface mineralization infriable materials, and successful large-scale pilot-plant testing(>30t) has been completed. The results of the testing show thatapproximately 65% of Cg concentrate is +80 mesh with good recoveriesand 95-99% Cg. With excellent infrastructure andlogistics, South Star is carrying its development plan towards Phase 1production projected in Q4 2022, pending financing.
South Star is committed to a corporate culture, projectexecution plan and safe operations that embrace the highest standardsof ESG principles based on transparency, stakeholder engagement,on-going education and stewardship. To learnmore, 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 x251
Email: cathy@chfir.com
Mr. Dave McMillan
Chairman
Email: davemc@telus.net
Twitter: https://twitter.com/southstarmining
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LinkedIn:
CAUTIONARY STATEMENT
Neither the TSX Venture Exchange norits Regulation Services Provider (as that term is defined in policiesof the TSX Venture Exchange) accepts responsibility for the adequacyor accuracy of this press release.
This news release and the UpdatedTechnical Report contain references to inferred resources. The Reportis preliminary in nature and includes inferred mineral resources thatare considered too speculative geologically to have the economicconsiderations applied to them that would enable them to becategorized as mineral reserves.
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 commodityprice fluctuations; and other risks and uncertainties related to theCompany's prospects, properties and business detailed elsewhere in theCompany's disclosure record. Should one or more of these risks anduncertainties materialize, or should underlying assumptions proveincorrect, actual results may vary materially from those described inforward-looking statements. Investors are cautioned againstattributing undue certainty to forward-looking statements. Theseforward-looking statements are made as of the date hereof and theCompany does not assume any obligation to update or revise them toreflect new events or circumstances. Actual events or results coulddiffer materially from the Company's expectations orprojections.
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