First Phosphate Corp. (CSE:PHOS, OTCQX:FRSPF, FRA:KD0, OTC:FPHOY) has announced plans for a non-brokered private placement aimed at existing investors, targeting minimum gross proceeds of $5 million.
The offering will consist of a combination of hard dollar units and flow-through shares, each priced at $2 per unit or share
Under the hard dollar unit offering, each unit will include one common share and one warrant. Each warrant will allow holders to purchase an additional common share at $2.50 until December 31, 2026, subject to an accelerated expiry provision tied to the company’s share price performance.
The flow-through share portion of the financing is intended to support exploration work related to the company’s Québec projects.
First Phosphate said the expenditures are expected to qualify as Canadian exploration expenses and be eligible under Canada’s Critical Mineral Exploration Tax Credit framework.
The company said net proceeds from the hard dollar unit offering will be used for development activities, working capital, and general corporate purposes.
The financing is expected to close on or about June 12, 2026.
First Phosphate also said eligible finders may receive fees of up to 8% of gross proceeds raised from subscribers they introduce, along with compensation warrants equal to up to 8% of the securities sold through those introductions.
The compensation warrants will carry the same $2.50 exercise price and December 31, 2026, expiry date, and are also subject to accelerated expiry conditions if the company’s shares trade above specified levels.