First Phosphate Corp. (CSE:PHOS, OTCQX:FRSPF) announced that it has completed an oversubscribed private placement to a strategic investor and other follow-on investors.
The company raised a total of $2.18 million through the issuance of 2.4 million flow-through shares at $0.90 per share, generating gross proceeds of approximately $2 million, and 177,666 hard dollar units at $0.90 per unit, adding about $160,000.
Since June 2022, First Phosphate has raised approximately $42.2 million through 10 management-led, non-brokered private placements.
As disclosed earlier in November, the gross proceeds from the Flow-Through Offering will be used to incur "Canadian exploration expenses" that qualify as "flow-through mining expenditures" under the Income Tax Act (Canada) related to the company's projects in Québec.
The net proceeds from the Hard Dollar Unit Offering will be allocated to exploration and development activities, working capital, and general corporate purposes.
The offering is expected to close on or about November 21, or on such other date as determined by the company.
As part of the offering, the company issued 178,698 compensation common shares at $0.90 per share and 178,698 Compensation Warrants. The warrants are exercisable at $1.25 per common share until April 30, 2026, with a potential accelerated expiry if the volume-weighted average trading price of the company’s shares reaches or exceeds $2 over five consecutive trading days.