South Star Announces Corporate Updates: Santa Cruz Plant Progress and Corporate Planning
Rhea-AI Summary
South Star Battery Metals (OTCQB: STSBF) reports Santa Cruz plant restart delivered a successful first week of operations with no mechanical or electrical issues reported. The plant restarted approximately three months ahead of schedule and is operating single-shift while management plans to scale to 5,000 tonnes/year of concentrate as workforce training continues. The Board will pursue alternative financing after discussions with Sprott to support growth at Santa Cruz.
Positive
- Restart completed ~3 months ahead of schedule
- No mechanical or electrical issues reported in first week
- Plan to scale to 5,000 tonnes/year of concentrate production
Negative
- Plant currently operating on a single-shift basis; full capacity not yet reached
- Plant had been idle for ~6 months prior to restart, requiring ramp-up
- Board pursuing alternative financing after discussions with Sprott, introducing financing execution risk
News Market Reaction – STSBF
In the Apr 28 session, STSBF gained 16.27%, reflecting a significant positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
VANCOUVER, British Columbia, April 28, 2026 (GLOBE NEWSWIRE) -- South Star Battery Metals Corp. (“South Star” or the “Company”) (TSXV: STS) (OTCQB: STSBF) is pleased to report that the first week of operations at the Santa Cruz plant delivered outstanding results. The mechanical and electrical systems performed reliably, with no reported issues during the week. The plant was operated on a single-shift basis and management anticipates continued steady progress in the coming weeks as operations continue to ramp up.
Santa Cruz Project:
As reported on April 8, 2026, the Santa Cruz plant was successfully re-started approximately three months ahead of schedule. Given that the plant was idle for approximately six months, the start-up has proceeded exceptionally well. No leaks or operational bottlenecks have been encountered. The plant is currently operating on a single-shift basis; however, operations are expected to scale up to 5,000 tonnes per year of concentrate production as the workforce expands and the team members are trained to meet the high operational and safety standards expected by management.
Tiago Cunha, Interim CEO, states, “The first week of operations at Santa Cruz has exceeded our expectations. The team demonstrated exceptional commitment, working through holidays to deliver a strong operational start. While such positive results over the first week were beyond initial expectations, we remain focused on continuing to learn the plant’s capacity and to manage expectations regarding production going forward. The improvements we made to the plant address the bottlenecks we saw when we initially started the plant last year, such as handling wet saprolite ore.”
Financing:
The Sprott streaming and bridge loan agreements have been an important component of the Company’s growth plan since inception, and the association with Sprott has been a valued part of South Star’s development. After continued discussions with Sprott, the Board has decided to pursue alternative financing, which will enable the Company to further plan and execute on its growth strategies at the Santa Cruz plant.
Qualified person statement
The technical and scientific information in this news release has been reviewed and approved by Marc Leduc, P.Eng, Director, a qualified person as defined under National Instrument 43-101, Standards of Disclosure for Mineral Projects.
About South Star Battery Metals Corp.
South Star is a Canadian battery metals project developer focused on the selective acquisition and development of near-term production projects in the Americas. South Star’s Santa Cruz graphite project, located in southern Bahia, Brazil, is the first of a series of industrial and battery metals projects that is anticipated to be put into production. Brazil is the third largest graphite producing region in the world with more than 80 years of continuous graphite mining. With excellent infrastructure and logistics, Santa Cruz is slated to be the newest graphite producer in the Americas. South Star trades 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 execution plan and safe operations that embrace the highest standards of ESG principles, based on transparency, stakeholder engagement, ongoing education, and stewardship. To learn more, please visit the Company website at southstarbatterymetals.com.
For additional information:
South Star Investor Relations
Email : invest@southstarbatterymetals.com
Phone : +1 (303) 519-5149
This press release contains “forward-looking statements” within the meaning of applicable securities legislation. Forward-looking statements relate to information that is based on assumptions of management, forecasts of future results, and estimates of amounts not yet determinable. Any statements that express predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance 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, statements regarding production and scaling of operations at Santa Cruz, and the Company’s plans and expectations.
Forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements, including, without limitation: risks related to failure to obtain adequate financing on a timely basis and on acceptable terms; risks related to the outcome of legal proceedings; political and regulatory risks associated with mining and exploration; risks related to the maintenance of stock exchange listings; risks related to environmental regulation and liability; the potential for delays in exploration or development activities or the completion of feasibility studies; the uncertainty of profitability; risks and uncertainties relating to the interpretation of drill results, the geology, grade and continuity of mineral deposits; risks related to the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses; results of prefeasibility and feasibility studies, and the possibility that future exploration, development or mining results will not be consistent with the Company's expectations; risks related to commodity price fluctuations; and other risks and uncertainties related to the Company's prospects, properties and business detailed elsewhere in the Company's disclosure record. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements. Investors are cautioned against attributing undue certainty to forward-looking statements. These forward-looking statements are made as of the date hereof and the Company does not assume any obligation to update or revise them to reflect new events or circumstances. Actual events or results could differ materially from the Company's expectations or projections.
