First Phosphate closes $4.7M third tranche of placement

Executive Summary

• First Phosphate Corp. closed the third tranche of its non-brokered private placement, raising $4.7 million through the issuance of flow-through shares and hard-dollar units.
• The company has now raised a total of approximately $39.9 million in nine management-led non-brokered private placement financings since June 2022, with $19.6 million closed in the last five months.
• The company remains on track for a completed feasibility study by end of 2026, mining permits by mid-2027, and an operating mine by mid-2029, supported by existing definitive, bankable offtake agreements.

Key Details

• Third Tranche Proceeds: Raised $4.7 million total.
  • Flow-Through Shares: Issued 3,168,400 shares for gross proceeds of $1.58 million.
  • Hard-Dollar Units: Issued 6.22 million units (comprising 6.22 million common shares and 3.11 million warrants) for gross proceeds of $3.1 million.
• Aggregate Offering Details (Three Tranches):
  • Total Gross Proceeds: $11.4 million.
  • Total Flow-Through Shares Issued: 13,067,400 (Gross proceeds: $6.5 million).
  • Total Hard-Dollar Units Issued: 9,785,000 (Gross proceeds: $4.89 million).
• Finder’s Fees and Compensation:
  • Cash paid to finders: $35,600 (third tranche); $96,800 total for the offering.
  • Shares issued to finders: 151,520 common shares (third tranche); 694,640 common shares and advisory shares (total offering).
  • Advisory share price: 50 cents per common share.
  • Compensation warrants issued: 222,720 (third tranche); 888,240 (total offering).
  • Warrant exercise price: 50 cents per common share.
  • Warrant expiry: December 31, 2025, subject to accelerated expiry.
• Statutory Hold Period: All securities issued are subject to a four-month-and-one-day statutory hold period.
• Future Tranche: The company may close a final tranche at its discretion on or before September 23, 2025.
• Use of Proceeds: As disclosed in the press release dated August 5, 2025.
• Insider Participation:
  • Larry Zeifman (Chairman) and Peter Nicholson (Director) each purchased 280,112 common shares through companies they control.
  • Transactions are exempt from formal valuation and minority shareholder approval requirements under MI 61-101.
• Marketing Contract: Entered into an advertising and e-marketing contract with NaFinance.com for $2,800 over an initial 13-month term commencing September 22, 2025.

Notable Quotes

• "Thanks to the trust placed in us, First Phosphate is now well capitalized and remains on track to deliver a completed feasibility study by the end of 2026, mining permits by mid 2027 and an operating igneous phosphate mine supported by existing definitive, bankable offtake agreements by mid 2029," says chief executive officer John Passalacqua. "Our timelines are aggressive, and, so they should be: an integrated North American lithium iron phosphate (LFP) battery supply chain is a matter of national security to both the United States and Canada."