First Phosphate arranges $2-million private placement

Executive Summary

• First Phosphate Corp. announced a non-brokered private placement to a strategic investor for gross proceeds of a minimum of $2 million.
• The offering consists of flow-through shares and hard-dollar units priced at 90 cents each.
• Proceeds are designated for Canadian exploration expenses related to projects in Quebec, as well as general corporate purposes and working capital.

Key Details

• Gross Proceeds: Minimum of $2 million.
• Instrument Structure:
  • Flow-through shares: Priced at $0.90 per share.
  • Hard-dollar units: Priced at $0.90 per unit. Each unit comprises one common share and one common share purchase warrant.
• Warrant Terms:
  • Each hard-dollar unit includes one warrant exercisable for one common share.
  • Exercise price: $1.25 per common share.
  • Expiry: April 30, 2026.
  • Accelerated expiry clause: If the volume weighted average trading price on the Canadian Securities Exchange exceeds $2.00 for five consecutive trading days, the company may accelerate expiry to 30 days following a press release.
• Use of Proceeds:
  • Flow-through proceeds: Canadian exploration expenses classified as flow-through mining expenditures for projects in Quebec.
  • Hard-dollar unit proceeds: Exploration and development activities, working capital, and general corporate purposes.
• Closing Date: Expected on or about November 21, 2025.
• Hold Period: All securities subject to a four-month-and-one-day statutory hold period.
• Finder’s Fees:
  • Up to 8% of gross proceeds raised from introduced subscribers.
  • Compensation warrants equivalent to up to 8% of the number of hard-dollar units or flow-through shares issued to introduced subscribers.
  • Compensation warrant terms: Exercise price of $0.90 per share, expiring April 30, 2026, with the same accelerated expiry mechanism as the unit warrants.
  • The company reserves the right to pay cash finders' fees on the flow-through offering in common shares at the issue price.

Notable Quotes

• None provided in the text.