FULL DISCLOSURE: The Deep Dive is long the equity of First Phosphate.
First Phosphate (CSE: PHOS) continues to build out its supply chain, announcing this morning that it has entered into a partially binding letter of intent that would provide a use case for the phosphogypsum produced from its proposed purified phosphoric acid plant.
The company has signed a letter of intent with Rapid Building Systems, which would see the development of a Rapidwall manufacturing plant established in the Saguenay-Lac-St-Jean region of Quebec. The development would enable First Phosphate to utilize its phosphogypsum in the manufacturing of building material panels, known as the Rapidwall, as well as for a fire resistant spray plaster, known as Rapidseal.
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“We are pleased to have tested First Phosphate phosphogypsum and can confirm that it will be able to produce excellent quality Rapidwall building material. This is some of the highest quality phosphogypsum feedstock that we have ever tested, material which does not require the additional purification or neutralization that do most other gypsums from around the world. First Phosphate gypsum can be directly calcined to produce Rapidwall or Rapidseal material to provide additional revenue streams for the Company with minimal processing steps,” commented Ben Lucas, General Manager of Rapid Building Systems.
The panels are a prefabricated load bearing walling unit that is manufactured using a moulding process. The panels, made of gypsum and reinforced with glass-fibre, are said to be suitable for use in single, double, and multi-storey housing, as well as commercial and industrial development. The panel serves as both the internal and external load bearing wall, removing the need for brick, timber wall frames, and plasterboard, thereby reducing greenhouse gases in the construction of housing relative to traditional methods.
Rapidseal meanwhile amounts to a fire resistant spray plaster, that is a solution developed to fight against spontaneous combustion and fire prevention in mining, bio-organic landfill, and forestry operations.
“Rapidwall and Rapidseal will help to valorise our clean phosphogypsum into products which are vital to rural and indigenous communities across North America. This is an exceptional development in our commitment to a circular economy and to upcycling of our waste streams,” commented First Phosphate CEO John Passalacqua.
First Phosphate currently estimates that upon completion of its mine and manufacturing facilities, the phosphogypsum bi-product produced as part of manufacturing battery-grade purified phosphoric acid will amount to 700,000 tonnes of clean recyclable gypsum. The company says that that is enough gypsum to produce Rapidwall systems to support the construction of 25,000 three bedroom homes every year.
First Phosphate last traded at $0.25 on the CSE.
FULL DISCLOSURE: Canacom Group, the parent company of The Deep Dive is long the equity of First Phosphate. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.
