VANCOUVER, British Columbia, November 27, 2025 (GLOBE NEWSWIRE) — South Star Battery Metals Corp. (“Southern Star” or “Company” (TSXV: STS) (OTCQB: STSBF) is pleased to report its operating and financial results for the quarter ended September 30, 2025, as well as additional business updates.
South Star interim CEO Thiago Cunha commented:
“We are pleased to announce that we have made a significant difference in addressing the operational challenges at the plant. With the successful raising of an oversubscribed amount of $4.8 million, we now have the funding to continue plant upgrades at the Santa Cruz Graphite Mine and are on track to restart production in 2026, marking a new chapter of growth and sustainability for the company.”
Corporate events for the quarter
- Appointments of Thiago Cunha as interim CEO, Darren Prince as CFO and Corporate Secretary and Rogerio Barcellos as CEO.
- Successful completion of initial private placement financing in July/August 2025 for gross proceeds of US$302,610 (CAD$415,263).
- Announced (and subsequently closed on November 21, 2025) an oversubscribed private placement for gross proceeds of US$4,800,000 (CAD$6,672,000) with cash levels sufficient to support operations through 2026.
- A non-binding indicative term sheet has been announced for a US$4,000,000 3-year credit facility with Sprott Streaming for the Santa Cruz graphite mine in Brazil, which is expected to provide additional resources to execute the company's strategic plan.
Updating Operations
Two critical pieces of equipment needed to restart the plant have been purchased and delivery times have been shortened. The scrubber delivery time has been reduced from 180 to 90 days at no additional cost, while the dryer continues to operate as scheduled. Additional initiatives originally envisioned in the restructuring plan were implemented free of charge through workforce mobilization under new leadership, demonstrating the Company's cultural transformation and its impact on productivity and costs.
We completed a comprehensive review of our cost structure, achieving significant savings through contract renegotiations, streamlined processes and elimination of inefficiencies. Although some savings will take time to be realized due to contract terms, the Company expects to experience the full impact in the coming months with an estimated reduction of approximately 60% to 65% compared to historical costs.
The company has strengthened its team with technical specialists associated with production and plant operations and fostered a culture focused on quality, results and a relentless pursuit of improvement. South Star employees represented the company at ExpoIbram 2026, Itabela's first time taking part in the event.
Installation and commissioning of the new equipment is expected to be completed during 2026, ensuring stable production without the climate-related disruptions experienced in 2025. The Company expects to reach an annual production capacity of 5,000 tonnes by mid-2026, after which the Company plans to install a new filter press to increase capacity to 10,000 tonnes per annum by the end of 2026. At this installed capacity, the Company expects to operate above breakeven levels, generating positive free cash flow. flow and strengthening your financial position.
Selected financial data
The following selected financial data is summarized from the Company's financial statements and related notes thereto for the three and nine months ended September 30, 2025 and 2024.
| Three months are over September 30, |
Nine months are over September 30, |
|||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||
| $ | $ | $ | $ | |||||||||
| Loss and total damage | (823 278 | ) | (1,289,812 | ) | (30,523 | ) | (6,104,622 | ) | ||||
| Loss per share – basic and diluted | (0.02 | ) | (0.03 | ) | (0.03 | ) | (0.09 | ) | ||||
| September 30, 2025 |
December 31st, 2024 |
|||
| $ | $ | |||
| Cash and cash equivalents (excluding subsequent charge of US$4.8 million) | 16,010 | 2 091 299 | ||
| Total assets | 21 128 878 | 20 205 794 | ||
| Total current liabilities | 2 155 424 | 4 455 764 | ||
| Total liabilities | 15 133 893 | 15 985 466 | ||
| Total share capital | 5 994 985 | 4 220 328 | ||
The above financial data should be read in conjunction with the Company's financial statements, notes thereto and related management's discussion and analysis for the three and nine months ended September 30, 2025 and 2024, copies of which are available under the Company's profile at www.sedarplus.ca.
ABOUT SOUTH STAR BATTERY METALS CORP.
South Star is a Canadian battery metals project developer focused on selectively acquiring and developing short-term manufacturing projects in the Americas. South Star's Santa Cruz graphite project, located in Southern Bahia, Brazil, is the first in a series of industrial metals and battery projects that South Star plans to bring into production. Brazil is the second largest graphite producing region in the world, with continuous mining going on for over 80 years. Santa Cruz has surface mineralization of unconsolidated materials and successful large-scale pilot plant testing (>30 tonnes) has been completed. Test results show approximately 65% graphite concentrate is +80 mesh with good yield and 95%-99% graphitic carbon (Cg). With excellent infrastructure and logistics, South Star Phase 1 is ramping up commercial production with first sales commencing in May 2025. Santa Cruz is the first new graphite production facility in America since 1996.
The second South Star project in development is strategically located in the center of the emerging electric vehicle, aerospace and defense manufacturing hub in Alabama, USA. The BamaStar project includes a historic mine that operated during World War I and World War II. The vertically integrated production facilities include a mine and industrial processing plant in Coosa County, Alabama, and a processing and processing plant in Mobile, Alabama, which will process natural flake graphite concentrates from the Santa Cruz and BamaStar mines. Preliminary Economic Assessment of NI 43-101 (“PEA“) demonstrates strong economic results with pre-tax net present value (“NPV8%“) in the amount of US$2.4 billion and internal rate of return (“internal rate of return“) of 35%, as well as an after-tax NPV8% of $1.6 billion with an internal rate of return of 27% (for additional information regarding these figures and underlying assumptions, see the Company's press release dated November 13, 2024 and the PEA, which are available under the Company's profile at www.sedarplus.ca). South Star also received a $3.2 million grant from the U.S. Department of Defense Title III program to develop a feasibility study for the BamaStar project. South Star shares trade on the TSX Venture Exchange under the symbol STS and on the OTCQB under the symbol STSBF.
South Star is committed to a corporate culture, project delivery plan and safe operations that meet the highest standards of ESG principles based on transparency, stakeholder engagement, ongoing learning and governance. To learn more, visit the company's website at: http://www.southstarbatterymetals.com.
The scientific and technical content of this press release has been reviewed, verified and approved by Mark Leduc, P.E., a “qualified person” under National Instrument 43-101 and Chairman of South Star Battery Metals Corp.
On behalf of the South Star Board of Directors,
MR. MARK LEDUK,
CHAIRMAN OF THE BOARD OF DIRECTORS
For more information contact:
South Star Investor Relations
WARNING
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.
FORWARD-LOOKING INFORMATION
This press release contains “forward-looking statements” within the meaning of applicable securities laws. Forward-looking statements relate to information that is based on management's assumptions, projections of future results and estimates of amounts that have not yet been determined. Any statements that express forecasts, expectations, beliefs, plans, projections, goals, assumptions or future events or results are not statements of historical fact and may be “forward-looking statements.”
Forward-looking statements in this press release include, but are not limited to, the realization of expected cost savings, receipt of critical equipment within expected time frames, achievement of design capacity at the Santa Cruz plant, commencement and timing of production at the Santa Cruz project; scaling operations and achieving break-even operating levels and positive cash flow; entering into a credit line with Sprott Streaming; and the Company's overall strategy, plans and future expectations.
Forward-looking statements are subject to a variety of risks and uncertainties that could cause actual events or results to differ from those reflected in the forward-looking statements, including, but not limited to: risks associated with the inability to obtain adequate financing on a timely basis and on acceptable terms; risks associated with the outcome of litigation; political and regulatory risks associated with mining and exploration; risks associated with maintaining stock exchange quotes; risks associated with environmental regulation and liability; the potential for delays in exploration or development or completion of feasibility studies; uncertainty of profitability; risks and uncertainties associated with the interpretation of drilling results, the geology, grade and continuity of mineral deposits; risks associated with the inherent uncertainty of production and cost estimates and the possibility of unexpected costs and expenses; the results of preliminary and feasibility studies and the possibility that future exploration, development or production results will not meet the Company's expectations; risks associated with fluctuations in commodity prices; and other risks and uncertainties associated with the Company's prospects, properties and business that are described in detail elsewhere in the Company's disclosures. Additional information regarding these and other risk factors can be found in the Company's continuous disclosure documents available on its profile on SEDAR+ at: www.sedarplus.ca.
If one or more of these risks and uncertainties materialize or if underlying assumptions prove incorrect, actual results could differ materially from those described in the forward-looking statements. Investors are cautioned not to place undue reliance on forward-looking statements. These forward-looking statements are made as of the date hereof, and the Company undertakes no obligation to update or revise them to reflect new events or circumstances. Actual events or results may differ materially from the Company's expectations or forecasts.
