First Phosphate Corp. (CSE:PHOS, OTCQB:FRSPF) said on Wednesday it signed two long-term offtake agreements with creditworthy partners for its future production in Saguenay-Lac-St-Jean, Quebec, a move aimed at de-risking its projects and bolstering financing prospects.
Definitive terms of the agreements, including delivery timelines and termination rights, will be outlined in separate contracts, the firm said in a statement.
Separately, First Phosphate announced it has entered the next phase of discussions with the Pekuakamiulnuatsh First Nation regarding potential financial involvement.
The talks build on a collaboration agreement signed in April 2024.
"We congratulate First Phosphate on this offtake agreement," said Pekuakamiulnuatsh First Nation Chief, Gilbert Dominique in a statement.
"It is with optimism that we welcome the achievement of this important milestone, and we look forward to pursuing the next stage of our discussions with First Phosphate."
Industrial operations remain subject to permitting and financing conditions, the company said.
CEO John Passalacqua noted the company's progress in fostering a "trusting relationship" with the First Nation, emphasizing their shared commitment to advancing the project in a manner respectful of community values.
The agreements also include termination rights for the buyers if initial deliveries are delayed without a mutually agreed extension.
First Phosphate continues to pursue regulatory approvals and secure financing to move forward with industrial operations.