First Phosphate Corp. ("First Phosphate" or the "Company") is pleased to announce an initial payment under an amendment made to its existing, long-term phosphate concentrate offtake agreement in the form of letter of intent (the "LOI") with an existing partner (the "Purchaser").
The Purchaser has agreed to provide a lump-sum pre-payment (the "Lump-sum pre-payment") equivalent to US $530,000 to First Phosphate to assist the Company in advancing the Bégin-Lamarche phosphate mining project to a feasibility study and an eventual production decision.
First Phosphate completed a Preliminary Economic Assessment on its Bégin-Lamarche phosphate project on December 4, 2024, which recommended, among other things, additional drilling and exploration work to convert certain inferred mineral resources to indicated mineral resources and certain indicated mineral resources into measured mineral resources. First Phosphate is currently in the process of completing a 30,000-metre drill program, which is expected to be completed by April 2026, to finalize the geological model relative to its mineral resources upon which a decision will be made with respect to proceeding with a feasibility study. If First Phosphate decides not to advance to a feasibility study or makes a negative production decision, the Lump-sum pre-payment shall be refundable to the Purchaser.
In other news, Under the collaboration agreement signed on April 9, 2024, the Company has issued 240,132 shares to Pekuakamiulnuatsh First Nation for the exploration and development expenditures undertaken by the Company on the First Nation's lands in calendar 2025.
Qualified Person
The scientific and technical disclosure for First Phosphate included in this news release has been reviewed and approved by Gilles Laverdière, P.Geo. Mr. Laverdière is Chief Geologist of First Phosphate and a Qualified Person under National Instrument 43-101 - Standards of Disclosure of Mineral Projects ("NI 43-101").