South Star Battery Metals Finalizes Land Purchase and Secures Mining Licenses for Santa Cruz Graphite Mine

VANCOUVER, BC / ACCESSWIRE / June 19, 2024 / South Star Battery Metals Corp. announced the completion of their final payment for the land required for their Phase 1 plant and operations at the Santa Cruz Graphite Mine in Bahia, Brazil. The land encompasses approximately 325 hectares and will be crucial for the initial three years of operations.

The Brazilian Ministry of Mines and Energy has approved the definitive mining licenses for five areas covering 4,431 hectares. This approval pertains to Phases 1, 2, and 3 operations, ensuring a complete suite of required mining and environmental licenses and permits.

The construction of Phase 1 is on schedule for substantial completion by June 2024, with commercial sales expected to commence in September 2024. Once operating at full capacity, the plant is projected to produce up to 1,000 tonnes of graphite per month by Q4 2024.

CEO Richard Pearce highlighted the land acquisition's impact on the company's financial stability and the successful de-risking of Santa Cruz’s expansion from a permitting standpoint. An agreement with Sprott secures about 50% of the Phase 2 CAPEX, with an updated feasibility study incorporating Phase 3 already underway.

Santa Cruz is set to become the first new graphite production facility in the Americas since 1996, marking a significant development for South Star Battery Metals Corp. and the industry.