First Phosphate Sees Financing Oversubscribed By 275%, Raising $7.5 Million

FULL DISCLOSURE: This is sponsored content for First Phosphate.

First Phosphate (CSE: PHOS) has closed a second tranche of it’s recently announced non-brokered private placement, which was oversubscribed to the tune of 275% due to extremely strong demand.

“We are pleased by this large vote of confidence placed in First Phosphate by existing and new shareholders including a number of institutional investors. We are now in position to be able to drill this winter and begin uncovering the full extent of the Bégin-Lamarche high-purity igneous rock phosphate horizon at only 70 km from the deep-sea Port of Saguenay,” commented CEO John Passalacqua on the closing.

The financing has seen aggregate gross proceeds of $7.5 million raised, with the second tranche consisting of 3.1 million hard dollar units priced at $0.40 per each, and 12.6 million flow through shares priced at $0.50. Hard dollar units contained one common share and one half of a common share purchase warrant.

A potential final tranche of the financing is slated for closing on January 10, 2024.

READ: First Phosphate Enters MOU For 6,000 Tonnes Per Year Of LFP Cathode Active Material, LFP / LFMP Tech

“In our experience, proximity to port and access to infrastructure and workforce are the single largest determinants for the economic viability of any phosphate project. Bégin-Lamarche has all these strong requisites. We feel that it will become the first phosphate mine to see production in Quebec. We are now in a position to accelerate its development,” continued Passalacqua.

The company also identified that management has provided a credit agreement to First Phosphate, which is intended to provide working capital to the company. The arrangement, which involved the firms CEO, CFO, and the Chairman, will see $2.1 million provided to the company under a secured revolving credit facility that will be advanced in installments.

In exchange for the line of credit, 5.25 million LOC Warrants were provided to the lenders, which contain an exercise price of $0.40 and are valid for a period of five years.

First Phosphate last traded at $0.385 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.

Video Articles

Silver’s Finally Breaking the System | Keith Neumeyer – First Majestic

The Best News for Gold Was the Drop! – Peter Grandich

McEwen Copper: The Los Azules Feasibility Study

Recommended

Altamira Gold Identifies Presence Of Second Mineralized Porphyry Body At Cajueiro

Steadright To Conduct Multi-Phased Exploration At Historic Goundafa Polymetallic Mine

Related News

First Phosphate Enters Licensing Agreement For LFP Production Tech

First Phosphate (CSE: PHOS) continues to head down the lithium iron phosphate path, announcing this...

Tuesday, March 28, 2023, 12:57:51 PM

First Phosphate Reports Grab Sample Assays As High As 20.52% Phosphate

The latest assay results are in for First Phosphate related to a recent surface sampling...

Wednesday, February 8, 2023, 08:49:17 AM

First Phosphate Set To Begin Trading This Morning

First Phosphate (CSE: PHOS) will today become the newest issuer listed on the Canadian Securities...

Wednesday, February 22, 2023, 08:05:44 AM

First Phosphate: New Report Suggests Flagship Property Holds ESG-Compliant Source Of Phosphate For LFP Battery Industry

First Phosphate Corp (CSE: PHOS) has received a research report from Queen’s University that suggests...

Tuesday, March 14, 2023, 11:22:30 AM

First Phosphate Commissions Phosphate Concentration Pilot Plant, Produces 900kg Of Apatite Concentrate

First Phosphate (CSE: PHOS) has taken a major step this morning, confirming that it has...
Monday, June 19, 2023, 08:36:44 AM