First Phosphate Corp. (CSE:PHOS) announced plans for a non-brokered private placement, aiming to secure a minimum of $2 million to advance its Lithium Iron Phosphate (LFP) battery strategy.
The offering comprises of hard dollar units offered at $0.40 per unit, which include one share and half of a share purchase warrant; flow-through shares priced at $0.50 per share; and a charity flow-through offering at $0.63 per share through a charitable donation arrangement.
Wealth Creation Preservation & Donation, an exempt market dealer in Canadian resource financing, will lead a consortium of investors for the charity flow-through offering, which First Phosphate said will minimize dilution.
Net proceeds from the hard dollar unit offering will be channeled into exploration, development activities, working capital, and general corporate purposes, while proceeds from the flow-through and charity flow-through offerings will fund exploration on First Phosphate's projects in Québec.
First Phosphate specializes in extracting and refining phosphate for the production of cathode active material for LFP batteries. The company aims to achieve high purity levels, operate responsibly with a low carbon footprint, and plans to integrate vertically into the supply chains of major North American LFP battery producers, leveraging its substantial land claims in the Saguenay-Lac-St-Jean Region of Quebec, Canada, known for yielding high-purity phosphate material.
The proposed offering is expected to close around December 31, 2023.