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First Phosphate Corp (CSE: PHOS) already has production in mind when it comes to its properties in the Saguenay-Lac-St-jean region of Quebec. The firm this morning revealed it has entered into a non-binding memorandum of understanding to secure the supply of sulfuric acid, which would be used in future industrial facilities.
The MOU, entered into with NorFalco, a division of Glencore Canada, outlines that First Phosphate will obtain the sulfuric acid required for its future phosphoric acid and other industrial facilities from the Glencore subsidiary.
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Sulfuric acid is a key ingredient for the production of phosphoric acid. First Phosphate, along with its previously announced partner Prayon Technologies SA, is currently working towards establishing a phosphoric acid facility at the Port of Saguenay in Quebec. The plant is a key component in the development of a localized LFP battery supply chain.
The two parties are to work together to come to a definitive supply agreement.
“This agreement is a significant first step in what we expect to be a meaningful ongoing supply relationship. An agreement with NorFalco secures a key and often overlooked raw material from a major local supplier for the future development and growth of First Phosphate’s industrial activities,” commented CEO John Passalacqua.
First Phosphate last traded at $0.43 on the CSE.
FULL DISCLOSURE: First Phosphate is a client of Canacom Group, the parent company of The Deep Dive. Canacom Group is currently long the equity of First Phosphate. The author has been compensated to cover First Phosphate on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. We may buy or sell securities in the company at any time. Always do additional research and consult a professional before purchasing a security.
