First Phosphate Corp. has announced the closing of the final tranches of its previously announced non-brokered private placement financing, raising a total of $3.4 million.
The mineral exploration and development company said it raised the ceiling of the private placement from $2 million to accommodate increased investor interest. The proceeds of the offering are expected to be used for general working capital purposes and exploration activities, it added.
“We are pleased to have surpassed our initial fundraising objective and exceptionally pleased to have significant and pertinent investors on board,” First Phosphate CEO John Passalacqua said in a statement. “The Saguenay-Lac-St-Jean Region of Quebec is central to First Phosphate and we plan to see it through as a major hub for the development of the lithium iron phosphate (LFP) battery industry in North America.”
READ: First Phosphate announces Mineral Resource Estimate for Lac à l’Orignal project
The company noted that it issued 1,250,000 flow-through (FT) units on December 30, 2022, as part of the final tranches of the offering for gross proceeds of $500,000. On January 17, it issued 1,574,784 hard-dollar (HD) units for gross proceeds of $551,174.40. As part of this final tranche, it said it paid a cash commission of $26,264 and issued 75,040 compensation warrants.
In total, it issued 5,907,862 HD Units at $0.35 each for gross proceeds of $2,067,751.71 and 3,322,000 FT units at $0.40 each for gross proceeds of $1,328,800, and collectively with the HD units aggregate gross proceeds of $3,396,551.71. The total commission was $163,379.04 and 422,297 finder warrants.
First Phosphate is fully dedicated to extracting and refining advanced phosphate material for the lithium iron phosphate battery industry. The company holds over 1,500 square kilometres of total land claims in the Saguenay Region of Quebec, Canada, which it is actively developing. First Phosphate properties consist of rare anorthosite igneous rock formation that generally yields high-purity phosphate concentrate devoid of high concentrations of deleterious heavy metals.
Contact the author at stephen.gunnion@proactiveinvestors.com