South Star Battery Metals Corp. has completed the product qualification process for graphite concentrate from the Santa Cruz mine in Bahia, Brazil, receiving a 36-tonne purchase order from a major customer.

The initial bulk shipment is scheduled for dispatch this week. Following three previous sample shipments for laboratory analysis, this order initiates discussions for future purchases. South Star noted that while the volume is not financially material, the order marks a vital milestone toward regular revenues after plant fine-tuning.

The Santa Cruz project was chosen by the Brazilian National Development Bank (BNDES) and Brazil's Innovation Agency (FINEP) for the Transformation of Strategic Minerals initiative.

“We are very pleased to have achieved this significant milestone in the development of the Santa Cruz graphite project. While the laboratory analysis and price negotiation process took longer than anticipated, we see a clear path for significant potential revenue with this important customer. With the purchase order received and the graphite bags scheduled for shipment, we look forward to additional shipments of Santa Cruz graphite in the near future. This represents a significant accomplishment, particularly given the short period that the plant has been back in production and the significant progress we continue to make in fine-tuning the Santa Cruz process plant. We are encouraged by this progress and look forward to building on this momentum with future shipments.”

— Rogerio Barcellos, COO

The stock is currently trading at $0.235, up 9.30%.

Read the full announcement: South Star Achieves Graphite Purchase Order Milestone