Monday, June 2, 2025

Latest

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.

Leave a Reply

Video Articles

First Majestic Silver: The Santo Nino Discovery

Avino Silver Q1 Earnings: The Record Streak Continues!

Aya Gold & Silver Q1 Earnings: From Kitchen Sink to Record Results

Recommended

First Majestic Silver: The Santo Nino Discovery

Brazil Potash Completes Site Prep For Port Terminal

Related News

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 Intersects 83.5 Metres Of 7.8% Phosphate At Begin-Lamarche

Results are in for initial drilling at the Begin-Lamarche property, owned by First Phosphate Corp...

Friday, March 10, 2023, 09:23:25 AM

First Phosphate Raises $2.3 Million Via Oversubscribed Offering

First Phosphate has closed its most recent round of financing, raising gross proceeds of $2.3...

Wednesday, December 28, 2022, 12:03:00 PM

First Phosphate Produces Merchant Grade Phosphoric Acid In Pilot Program

First Phosphate (CSE: PHOS) has seen success with transforming its apatite concentrate to merchant grade...
Wednesday, September 6, 2023, 09:37:39 AM

LFP Batteries: A $50 Billion Industry In The Making — With Peter Kent

Joining SmallCapSteve today is Peter Kent, President & Director of First Phosphate Corp. Peter is...

Thursday, October 6, 2022, 01:30:00 PM