First Phosphate Closes Oversubscribed Private Placement Financing
Summary
The issuer is solely responsible for the content of this announcement.Saguenay, Quebec - Newsfile Corp. - 2 January 2025 - First Phosphate Corp. (CSE: PHOS) (OTCQB: FRSPF) (FSE: KD0) ("First Phosphate" or the "Company") is pleased to announce that it has closed its non-brokered private placement financing (the "Offering"), as further described in the Companys news release dated December 18, 2024.As part of the Offering, originally announced for gross proceeds of a minimum of $1 million, the Company raised total gross proceeds of $2,695,459. "We are happy to have raised funds exclusively from a select group of existing and new investors, none of which is a traditional flow-through fund," says Company CEO, John Passalaqua.In connection with the Offering, the Company issued 230,948 Compensation Shares at a price of $0.35 per Compensation Share, and issued 230,948 Compensation Warrants, exercisable at a price of $0.50 per common share of the Company, until December 31, 2025, subject to an Accelerated Expiry Date. All securities issued are subject to a hold period of four months plus one day from the date of issuance.Under the collaboration agreement signed on April 9, 2024, the Company has issued 574,389 shares to Pekuakamiulnuatsh First Nation for the exploration and development expenditures undertaken by the Company on the First Nations lands in calendar 2024.As related parties of the Company received Flow-Through Shares and RSUs in connection with the Offering and the grant of RSUs, the transactions are considered related party transactions for the purposes of Multilateral Instrument 61-101 -("MI 61-101"). The Company is relying on an exemption from the formal valuation requirements of MI 61-101 available because the fair market value of the Flow-Through Shares and RSUs purchased by and issued to the related parties does not exceed 25% of the Companys market capitalization, as determined in accordance with MI 61-101. The Company did not file a material change report related to the transactions more than 21 days before the expected closing of the transactions as required by MI 61-101 but believes that this shorter period is reasonable and necessary in the circumstances as the Company wishes to improve its financial position and to close the Offering in short order for sound business reasons.This news release does not constitute an offer to sell or a solicitation of an offer to sell any of securities in the United States.