South Star Secures US$4 Million Debt Financing from Sprott Streaming

South Star Mining has announced a US$4 million debt financing with Sprott Streaming, a subsidiary of Canadian asset manager Sprott Inc. The financing will be used to support the mining company's growth and exploration efforts. Sprott Inc. specializes in precious metals and critical materials investments and offers a range of investment strategies, including exchange-listed products, managed equities, and private strategies.

South Star Mining Corp. ("South Star" or the "Company") has announced a significant debt financing agreement with Sprott Streaming, a subsidiary of Canadian asset manager Sprott Inc. The non-binding indicative term sheet outlines a US$4,000,000 loan facility over a 3-year maturity period to support the continued development and optimization of the Phase 1 Santa Cruz Graphite Mine in Brazil [1].

The loan facility is part of a broader strategy to enhance operational efficiency and ensure consistent product quality at the Santa Cruz Graphite Mine. The funds will be used for equipment adjustments and upgrades, working capital, and ongoing process optimization aimed at increasing concentrate production from 450 tonnes per month (tpm) to 1,000 tpm. Additionally, the loan will provide financial flexibility to support the mine's transition to commercial production.

Sprott Inc., known for its expertise in precious metals and critical materials investments, offers a range of investment strategies, including exchange-listed products, managed equities, and private strategies. This partnership underscores Sprott's confidence in South Star's growth prospects and the strategic importance of graphite in the energy transition.

The loan facility is subject to approval by the TSX Venture Exchange and is conditional on securing US$2,000,000 in equity or subordinated debt financing. South Star has appointed Mr. Darren Prins as its new Chief Financial Officer, replacing Ms. Samantha Shorter, who resigned to pursue other opportunities [1].

The appointment of Mr. Prins, with over 20 years of experience in senior finance roles, brings valuable expertise in corporate reporting, treasury management, and risk management to South Star. His appointment is expected to facilitate the company's capital markets initiatives and mergers & acquisitions transactions.

South Star's Santa Cruz Graphite Project is strategically located in Southern Bahia, Brazil, and is the first of a series of industrial and battery-metals projects that will be put into production. The project's successful large-scale pilot-plant testing has demonstrated high graphite concentrate recovery and purity, positioning it as a critical materials supplier for the energy transition.

References:

[1] https://finance.yahoo.com/news/south-star-announces-indicative-term-230000600.html