First Phosphate Corp. (CSE:PHOS, OTCQX:FRSPF) announced that it has closed a follow-on tranche of its oversubscribed non-brokered private placement financing, raising $3.78 million.
The tranche, completed on September 12, included the issuance of 5.15 million flow-through shares for gross proceeds of $2.58 million, along with 2.42 million hard dollar units, comprised of common shares and warrants, for gross proceeds of $1.21 million.
Including both tranches of the placement, First Phosphate has raised a total of $6.73 million.
That amount reflects the issuance of 9.9 million flow-through shares for $4.95 million in proceeds and 3.57 million hard dollar units for $1.78 million.
Since June 2022, the company said it has raised about $35.2 million through nine management-led non-brokered private placements, with $14.9 million of that total closed in the last five months.
As part of the latest tranche, First Phosphate paid $36,000 in cash finder’s fees and issued 324,800 common shares and 396,800 warrants.
Across the full offering, the company has paid $61,200 in cash finder’s fees, issued 543,120 compensation and advisory shares at $0.50 per share, and granted 665,520 compensation warrants exercisable at $0.50 until December 31, 2025, subject to accelerated expiry.
All securities issued are subject to a four-month and one day hold period under applicable securities laws.
As previously outlined by the company in August, the company said gross proceeds from the flow-through share portion of the financing will be directed toward “Canadian exploration expenses” that qualify as “flow-through mining expenditures” under Canada's tax laws.
These funds will support ongoing exploration work across First Phosphate’s portfolio of mineral projects in the province.
Net proceeds from the hard dollar unit portion of the offering are earmarked for exploration and development activities, working capital, and general corporate purposes, the company added.
First Phosphate added that it intends to close a final tranche of the offering on September 19, 2025.