First Phosphate receives $530K (U.S.) under offtake LOI

Executive Summary

• First Phosphate Corp. received an initial lump-sum prepayment of $530,000 USD under an amended long-term offtake agreement with an existing partner to fund the advancement of the Begin-Lamarche phosphate project toward a feasibility study.
• The prepayment is refundable if the company decides not to proceed to a feasibility study or makes a negative production decision.
• The company is currently executing a 30,000-metre drill program to convert mineral resources and finalize the geological model, with completion expected by April 2026.

Key Details

• Prepayment Amount: $530,000 (U.S.) lump-sum payment received from the purchaser.
• Purpose of Funds: To assist in advancing the Begin-Lamarche phosphate mining project to a feasibility study and an eventual production decision.
• Refund Condition: The lump-sum prepayment is refundable to the purchaser if First Phosphate decides not to advance to a feasibility study or makes a negative production decision.
• Project Status (Begin-Lamarche):
  • Preliminary Economic Assessment (PEA) completed on Dec. 4, 2024.
  • PEA recommended additional drilling and exploration to convert inferred resources to indicated, and indicated to measured resources.
  • Current activity: Completing a 30,000-metre drill program.
  • Expected completion of drill program: April 2026.
  • Goal: Finalize geological model relative to mineral resources to inform the feasibility study decision.
• Collaboration Agreement Update:
  • Under the collaboration agreement signed April 9, 2024, First Phosphate issued 240,132 shares to the Pekuakamiulnuatsh First Nation.
  • Consideration: Shares issued for exploration and development expenditures undertaken by the company on the First Nation's lands in calendar 2025.

Notable Quotes

• None provided in the text.