South Star Battery Metals announces US$28 million streaming agreement with Sprott Resource Streaming and Royalty
Torys is acting as counsel to Sprott Resource Streaming and Royalty with a team that includes Michael Pickersgill, Braden Jebson, Brendan Dean (corporate/mining) and Jacob Weinstock (financing).
On April 5, 2022, South Star Battery Metals Corp. (“South Star” or the “Company”) announced that it entered into a binding streaming agreement with Sprott Resource Streaming and Royalty Corp (“Sprott”) for a total cash consideration of up to US$28 million as prepayment for graphite concentrates from the Santa Cruz Graphite Project (“Santa Cruz or Project”) in Brazil. South Star will act as sales agent for Sprott on the percentage of production subject to the agreement.
The agreement will provide funding for South Star to move construction forward on the Santa Cruz Phase 1 operations with commercial production planned for Q2 of 2023. The stream provides for two deposits, with Phase 1 consisting of a US$10 million deposit and Phase 2 consisting of a minimum US$9 million and maximum US$18 million deposit (based on the availability of additional funding). Phase 1 use of proceeds of the agreement will be used for development, construction and commissioning of the Project and achievement of the Phase 1 5,000 tpa commercial production operation.
Further information can be found on Globe Newswire’s website.
South Star Battery Metals Corp. is a Canadian battery metals project developer focused on the selective acquisition and development of near-term production projects in the Americas.
Sprott Resource Streaming and Royalty provides specialized forms of capital to the mining sector on behalf of institutional investors.