First Phosphate Corp. (CSE:PHOS, OTCQX:FRSPF, FRA:KD0, OTC:FPHOY) earlier this week outlined new financial backing for its Bégin-Lamarche project, highlighting a letter of support from Denmark’s export credit agency EIFO for up to €170 million.
The company reported that the funding would contribute toward the estimated €450 million capital expenditure required to develop the igneous phosphate project.
CEO John Passalacqua said the support comes at a key stage, with the company approaching its feasibility study before moving into permitting and full project financing.
Passalacqua indicated that the EIFO backing significantly strengthens the company’s position as it builds out its capital stack. He stated that the company can now enter the next phase “extremely strong,” supported by the €170 million commitment.
A further letter of interest from the US Export-Import Bank provides additional flexibility, particularly in sourcing equipment from both Europe and the United States.
The CEO suggested that the combined support from EIFO and Exim Bank could account for a substantial portion of total project financing. He noted that EIFO alone could represent around 30–40% of the required funding, and when combined with other sources, the company could already be more than halfway toward its financing target.
Passalacqua also pointed to broader momentum behind the project, including a binding offtake agreement that has already delivered a prepayment earlier this year.