First Phosphate Corp. (CSE:PHOS, OTCQB:FRSPF) has announced plans to undertake a non-brokered private placement aiming to raise gross proceeds of at least $1 million.
The offering includes a combination of flow-through shares priced at $0.35 each and hard dollar units priced at $0.35 per unit.
Each hard dollar unit will consist of one common share and one-half of a common share purchase warrant.
Each whole warrant will be exercisable at $0.50 per share until December 31, 2025, subject to an accelerated expiry condition if the company's stock reaches a volume-weighted average price of $0.80 over five consecutive trading days.
The proceeds from the flow-through shares will be allocated to eligible Canadian exploration expenses under Canada’s tax act, specifically tied to the company’s Québec-based projects.
Funds raised from the hard dollar units will be used for exploration and development, working capital, and general corporate purposes.
The company expects to close the offering in one or more tranches by the end of December.
First Phosphate is a mineral development company focused on extracting and purifying phosphate from its Bégin-Lamarche Property in Quebec for use in the lithium iron phosphate (LFP) battery industry.