First Phosphate Corp. (CSE:PHOS, OTCQX:FRSPF, FRA:KD0, OTC:FPHOY) has announced that it has received a non-binding letter of intent from Denmark’s export credit agency, EIFO, for a potential guarantee of up to €170 million tied to its proposed igneous phosphate mining project in Quebec.
The Canadian company said the financing support would be directed toward equipment and service purchases for its project in the Saguenay–Lac-Saint-Jean region.
The guarantee, if finalized, would be provided to banks involved in funding the project, with EIFO expected to participate alongside other senior lenders.
"We look forward to continuing to work with First Phosphate and the other parties involved in this transaction," EIFO director Jens Hestbech said in a statement.
"We can assure First Phosphate that we will work with a constructive approach towards the project, in order to reach a successful result."
The export credit agency has experience supporting international project financing and export-related transactions.
The proposed guarantee remains subject to several conditions, including internal credit approval, completion of due diligence processes, and agreement on final financing structures. First Phosphate noted that the letter of intent is not legally binding.
Final terms will depend on the identification of the borrower, security arrangements, and compliance with Danish legal requirements, as well as environmental and social assessments typically required for projects of this scale.