VANCOUVER, British Columbia, Nov. 27, 2025 (GLOBE NEWSWIRE) — South Star Battery Metals Corp. (“South Star” or the “Company“) (TSXV:STS) (OTCQB:STSBF) is pleased to report its operating and financial results for the quarter ended September 30, 2025 and an additional update on operations.
South Star’s Interim Chief Executive Officer, Tiago Cunha, commented,
“We are pleased to announce that we have turned a significant corner with the operational issues at the plant. With the successful oversubscribed raise of US$4.8 million, we are now funded to continue the plant upgrades at the Santa Cruz Graphite Mine and on track to restart production in 2026, marking a new chapter of growth and resilience for the Company.”
Corporate Highlights During the Quarter
Appointments of Tiago Cunha as Interim CEO, Darren Prins as CFO and Corporate Secretary, and Rogerio Barcellos as General Manager.
Successful completion of initial financing over the July/August 2025 of private placement for gross proceeds of US$302,610 (C$415,263).
Announced (and subsequently closed on November 21, 2025) an over-subscribed private placement for gross proceeds of US$4,800,000 (C$6,672,000), with cash levels sufficient to sustain operations throughout 2026.
Announced non-binding indicative term sheet for a US$4,000,000 loan facility with Sprott Streaming over a 3-year maturity period for the Santa Cruz Graphite Mine in Brazil, which is expected to provide additional resources for the execution of the Company’s strategic plan.
Operations Update
Two critical pieces of equipment required for the plant restart have been purchased, with delivery timelines improved. The scrubber’s lead time was reduced from 180 days to 90 days at no additional cost, while the dryer remains on schedule. Additional initiatives originally budgeted for in the restructuring plan were completed at no cost through workforce mobilization under new management, 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, process optimization, and elimination of inefficiencies. While some savings will take time to materialize due to contract terms, the Company expects to realize the full impact over the coming months, with estimated reductions of approximately 60–65% compared to historical costs.
The Company has strengthened its team with technical professionals aligned to production and plant operations and fostered a culture focused on quality, results, and relentless pursuit of improvement. South Star employees represented the Company at ExpoIbram 2026—the first time the Itabela operation participated in this event.
Installation and commissioning of the new equipment are expected to be completed during 2026, enabling stable production free from climate-related disruptions experienced in 2025. The Company expects to reach annualized output of 5,000 tonnes by mid-2026, after which the Company plans to install a new filter press to expand capacity to 10,000 tonnes per year by year-end 2026. With this installed capacity, the Company anticipates operating above breakeven levels, generating positive free cash flow, and strengthening its 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 ended
September 30,
Nine months ended
September 30,
2025
2024
2025
2024
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