FULL DISCLOSURE: This is sponsored content for First Phosphate.
First Phosphate (CSE: PHOS) has reportedly received a letter of interest from the Export-Import Bank of the United States, who has expressed interest in providing financing of up to $170 million to the company.
The letter of interest is said to be in support of the procurement of US goods and services by the company in Canada, with the loan eligible for a maximum repayment period of ten years. The offer is said to expire October 14, 2024.
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“First Phosphate is committed to creating a strategic purified phosphoric acid reserve to service the development of the lithium iron phosphate battery industry in North America. We thank EXIM bank and US policy makers for working to build a strong North American LFP battery supply chain. We are honoured by the receipt of the LOI and look forward to committing to purchasing our capital equipment and services in America through support from EXIM. Access to this stable, government-backed financing allows us to build out our projects judiciously while limiting the amount of equity dilution to our shareholders,” commented CEO John Passalacqua.
READ: First Phosphate Enters MOU For Production Of Up To 40,000 Tonnes of LFP Cathode Active Material
Furthermore, the transaction may be eligible for special consideration under legislation that directs the Export-Import Bank to take steps to mitigate the competitive impact of export support provided by the People’s Republic of China and other covered countries.
The LOI does not represent a financing commitment, nor does it guarantee access to financing from the bank. Funding is subject to standard due diligence before a final commitment is made.
First Phosphate last traded at $0.30 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.
