First Phosphate Corp. (CSE:PHOS, OTCQB:FRSPF) announced it has closed an oversubscribed private placement financing, raising nearly $2.7 million, well above the initially planned $1 million.
"We are happy to have raised funds exclusively from a select group of existing and new investors, none of which is a traditional flow-through fund," First Phosphate CEO John Passalaqua said.
The company issued approximately 7.45 million Flow-Through Shares, raising $2.61 million in gross proceeds, and around 253,000 hard dollar units, generating $88,500 in gross proceeds.
Director Larry Zeifman participated by purchasing 285,714 flow-through shares.
As announced by the company in mid-December, the proceeds from the flow-through shares will be allocated to the company’s projects in Québec.
Funds raised through the hard dollar units will be directed toward exploration and development activities, working capital, and general corporate purposes.
Further, the company also granted 3.1 million restricted share units to directors, management, and staff as part of year-end bonuses, with immediate vesting under its Omnibus Equity Incentive Plan.
Shares of First Phosphate were trading 4% higher in early Thursday action.
--Updates with share price--