First Phosphate Corp. (CSE:PHOS, OTCQX:FRSPF) has announced a non-brokered private placement to a strategic investor for minimum gross proceeds of $2 million.
The offering will include a combination of flow-through shares, priced at $0.90 per share, and hard dollar units, also priced at $0.90 per unit.
Each hard dollar unit will consist of one share and one share purchase warrant, with each warrant exercisable at $1.25 until April 30, 2026.
The proceeds from the flow-through offering will be used to incur “Canadian exploration expenses” and “flow-through mining expenditures,” as defined in the Income Tax Act (Canada), for the company’s projects in Québec.
The proceeds from the hard dollar unit offering will support exploration, development, working capital, and general corporate purposes.
The placement is expected to close on or about November 21. All securities issued will be subject to a four-month and one-day statutory hold period.
Eligible finders will receive a cash fee of up to 8% of gross proceeds raised from investors they introduce, and compensation warrants equal to up to 8% of the securities issued. Each compensation warrant will be exercisable at $0.90 per share until April 30, 2026.
If the company’s shares trade at or above a volume-weighted average price of $2.00 for five consecutive trading days, First Phosphate may accelerate the expiry date of the compensation warrants to 30 days following a press release announcing the change.
First Phosphate is a mineral development and cleantech company focused on developing a vertically integrated lithium iron phosphate (LFP) battery supply chain for North America, with applications in energy storage, data centers, robotics, mobility, and national security.