First Phosphate Corp’s US$170 Million Financing Breakthrough

October 1, 2023

On Friday, September 29, 2023, First Phosphate Corp (CSE: PHOS) (Frankfort: KD0), headquartered in Saguenay, Quebec, Canada, made a noteworthy announcement that could potentially shake up the market. The company revealed that it had received a Letter of Interest from the Export-Import Bank of the United States (EXIM), indicating the availability of financing amounting to US$170 million. This announcement can be found in detail here.

Coincidental Encounter:

Remarkably, on the same day, my wife Pat and I embarked on a journey to attend the CEM Investment Conference at the JW Marriott Resort in Muskoka, Ontario, just moments after this landmark news. After a three-hour drive, as we were checking into the resort, in a rather unexpected turn of events, we ran into John Passalacqua, the CEO of First Phosphate, in the resort’s lobby.

To call this meeting a mere coincidence would be an understatement. At the conference, which brought together 48 companies, many represented by two individuals, 48 investors and private wealth managers, and a plethora of conference organizers, sponsors, and others, there were approximately 150 people in attendance. It’s truly remarkable that we encountered John Passalacqua first on this significant day for his company.

Our conversation with John began with a friendly reminder: “Hello Bill, do you remember me? We met in Montreal in June.” Following this, we engaged in a dialogue that commenced with my congratulating him on securing a US$170 million financing offer. I’m certain he was impressed that I was aware of this development mere hours after its announcement, despite our long car journey to reach the conference.

Moments later, as we parted ways, Pat asked me, “Is he always that intense?” I explained that when the dreams of a company founder are suddenly validated, it’s a momentous occasion that leaves an indelible impression. “Good on him,” I remarked, acknowledging his dedication.

First Phosphate’s Unique Position:

First Phosphate is a mineral development company dedicated to extracting and purifying phosphate to produce cathode active material used in Lithium Iron Phosphate (“LFP”) batteries. The company is committed to achieving high purity, adhering to full ESG (Environmental, Social, and Governance) standards, and maintaining a low carbon footprint.

They hold over 1,500 square kilometers of royalty-free land claims in the Saguenay-Lac-St-Jean Region of Quebec, Canada, which are actively being developed. These properties consist of rare anorthosite igneous phosphate rock known for its high-purity phosphate material with minimal concentrations of harmful elements.

The company’s strategic plan involves vertical integration, starting from mining operations and extending directly into the supply chains of major North American LFP battery manufacturers. This ensures a consistent and secure supply source for battery-grade LFP cathode active material.

Key Advantages of First Phosphate Corp:

Geographic Advantage: Situated in the mining-friendly jurisdiction of Quebec, Canada; part of the North American electric vehicle hub; strong government support for the industry; complies with the Inflation Reduction Act requirements; comprehensive 43-101 report and Preliminary Economic Assessment (PEA) completed; BlueSky properties with immense potential.
Prized Igneous Anorthosite Rock Phosphate: Sourced from the world’s cleanest phosphate rock found in igneous anorthosite; lacks heavy metals and has low sulfur content; yields significant quantities of LFP battery-grade purified phosphate for LFP Battery production; boasts over 1,500 square kilometers of royalty-free claims.
LFP Battery Grade Plus: Offers a traceable, ethical, ESG-compliant, and secure supply source; utilizes environmentally friendly and circular advanced mining and refinement methods; employs solventless phosphate extraction, eliminating gypsum slag piles; utilizes clean Quebec Hydro for processing.
Advanced Flagship Property: Features a comprehensive 43-101 Resource Estimate and Metallurgy; commenced PEA in February 2023; 89 drill holes with a total length of 8,776 meters; the main deposit extends 1,500 meters in length, 250 meters in width, and up to 100 meters in thickness; surface-level deposit with an average grade of 5.2% P2O5; conveniently located 145 km from the port.
Proximity to Saguenay City: Adjacent to the 6th largest city in Quebec; surrounded by commercial and industrial areas; access to a skilled industrial workforce.
Vicinity to Saguenay Airport: Offers daily flights to Montreal; provides interconnection to the global network.
Access to Saguenay Deep Sea Port: Allows large vessel access to the global market; unimpeded by locks; Memorandum of Understanding (MoU) in place with Port Saguenay; a dedicated area allocated for all industrial development needs.
Four-Season, Heavy Haul Road Access: Includes a paved provincial highway spanning 65 km; features a heavy-haul gravel logging road extending 80 km to the base of the property.

YouTube Videos:

For those seeking further insight into First Phosphate Corp and the critical minerals industry, here are some informative YouTube videos:

Future Prospects:

With a comprehensive resource estimate, metallurgical studies, and a Preliminary Economic Assessment (PEA) already completed, First Phosphate is on a promising trajectory. The recent validation of financing offers a strong indication of a bright future. As investors and observers, we’ll closely monitor First Phosphate Corp as it progresses in the LFP battery sector and contributes to the sustainable energy future.

Summary:

The First Phosphate story revolves around a dedicated founder-CEO who controls a valuable, mineral-rich property poised to become a key player in the Lithium Iron Phosphate (LFP) battery industry. My next step involves thoroughly investigating the company’s share structure and economic potential. However, the validation of financing offers a promising start to this compelling narrative.

Full Disclosure:

Not at any time have I accepted any remuneration from any company I have written about. I provide a free service as my contribution to a better world. On occasion, however, because of my belief in truth and transparency, I make comments that infuriate the people involved in these companies. I do the same with securities regulators. But as I want to help in the matter of wealth creation, those occasions are infrequent.

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