First Phosphate Corp. (CSE:PHOS, OTCQX:FRSPF) said it has received an initial payment under an amended long-term phosphate concentrate offtake arrangement, providing fresh funding to advance its flagship Bégin-Lamarche project in Quebec.
The company said an existing offtake partner has agreed to a lump-sum pre-payment equivalent to US$530,000, aimed at supporting work toward a feasibility study and an eventual production decision at Bégin-Lamarche.
The payment follows the completion of a preliminary economic assessment (PEA) for the project in December 2024, which outlined the need for additional drilling and exploration to upgrade portions of the mineral resource. The PEA recommended converting certain inferred resources to indicated status, and some indicated resources to the measured category, as part of the next phase of development.
First Phosphate is currently carrying out a 30,000-metre drill program at Bégin-Lamarche, which is expected to be completed by April 2026. The results are intended to refine the project’s geological model and underpin a decision on whether to proceed with a full feasibility study.
Under the terms of the amended letter of intent, the pre-payment is refundable should the company decide not to advance to a feasibility study or make a negative production decision.
Separately, First Phosphate also provided an update on its relationship with Pekuakamiulnuatsh First Nation. Under a collaboration agreement signed in April 2024, the company has issued around 240,000 shares to the First Nation in respect of exploration and development expenditures carried out on its lands during the 2025 calendar year.