First Phosphate Corp. (CSE:PHOS) said it has signed a non-binding memorandum of understanding (MOU) with NorFalco Sales, a division of Glencore Canada Corporation, to secure a crucial supply of sulfuric acid for its future industrial facilities in Saguenay-Lac-St-Jean, Quebec.
Under the terms of the MOU, pending the parties' agreement on a definitive sulfuric acid supply arrangement, First Phosphate will have access to NorFalco's sulfuric acid supply for its planned phosphoric acid and other industrial facilities located in Quebec.
In a statement, First Phosphate said that the two companies will continue to collaborate during the MOU's term and work towards a more definitive supply agreement.
The agreement represents a major step forward for First Phosphate's industrial activities, as it secures a key raw material from a major local supplier, strengthening the company's position in the pursuit of its development and growth objectives.
First Phosphate's CEO, John Passalacqua, expressed his satisfaction with the support from NorFalco.
"This agreement is a significant first step in what we expect to be a meaningful ongoing supply relationship,” Passalacqua told investors.
“An agreement with NorFalco secures a key and often overlooked raw material from a major local supplier for the future development and growth of First Phosphate's industrial activities."
Sulfuric acid plays a vital role in the production of phosphoric acid, which is central to First Phosphate's plans for sustainable development, including the establishment of a phosphoric acid facility anticipated at Port of Saguenay, Quebec, in partnership with Prayon Technologies SA of Belgium.
The phosphoric acid plant is an essential component of the company's strategy to establish a localized LFP battery supply chain in North America.
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