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.
Sponsored · Granada Gold Mine Inc.
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.
