First Phosphate Provides Update on Plans for a Purified Phosphoric Acid Plant at Port Saguenay, Quebec
Press Release
Saguenay, Quebec – February 20, 2024 – First Phosphate Corp. (“First Phosphate” or the “Company”) (CSE PHOS) (OTC: FRSPF) (FSE: KD0) is pleased to update the market on its plans for a purified phosphoric acid (“PPA”) plant at the Port of Saguenay and the development of the North American lithium iron phosphate (“LFP”) battery valley in the Saguenay-Lac-Saint-Jean Region of Quebec.
On November 21, 2022, First Phosphate CEO, John Passalacqua, addressed the Federation of Chambers of Commerce of the Saguenay-Lac-Saint-Jean Region of Quebec (“FCC-SLSJ”) and shared, with local business leaders and politicians, the vision for the creation of an LFP battery ecosystem in the Saguenay-Lac-Saint-Jean Region of Quebec. Mr. Passalacqua provided a further update to the FCC-SLSJ on February 8, 2024. A recording of the February 8 session is available at: https://www.youtube.com/watch?v=CnarUchmXdg
Building a PPA plant and an LFP battery ecosystem for North America is a major undertaking. Since first laying out the Company’s vision in 2022, First Phosphate has taken the following progressive steps towards realizing its PPA plant at Port Saguenay and in establishing the Saguenay-Lac-St-Jean region of Quebec as the LFP battery valley of North America.
Engineering and Feasibility Study
The Company has completed its internal pre-feasibility study for its PPA plant at Port Saguenay, Quebec and is in the process of evaluating engineering firms to begin a potential formal feasibility study. All PPA production will be fully internalized and limited to the development of LFP cathode active material (“CAM”) by the Company and its strategic partners so as not to disrupt existing fragile equilibria in the food phosphates and fertilizer industries. The Company has created a full proprietary financial model for the future PPA facility and is amenable to sharing details of its pre-feasibility work with those who have the ability to add synergies to its existing network of strategic partners.
Industrial Land, Infrastructure & Port Access
The Company signed a memorandum of understanding (“MOU”) with Port Saguenay Authority to secure industrial lands and deep-sea shipping access for the establishment a PPA plant:
Sulfuric Acid Supply
The Company signed an MOU with with NorFalco Sales (“NorFalco”), a division of Glencore Canada Corporation to secure supply of sulfuric acid (a key component in the production of PPA) for its future industrial facilities in Saguenay-Lac-St-Jean, Quebec:
Phosphate Concentrate Feedstock
The Company successfully concentrated its phosphate ore into beneficiated phosphate concentrate at ~41% pure P205 (~97% pure apatite) in pilot production and has developed a pilot plant for the purpose of creating feedstock to produce PPA:
PPA Production
The Company transformed its beneficiated phosphate concentrate into Merchant Grade Phosphoric Acid (“MGA”) and subsequently into food/battery grade PPA at pilot scale:
PPA Facility Financing
The Company established a clean, debt-free credit history and has been able to procure an LOI from the Export-Import Bank of the United States (“EXIM”) to provide stable, government-backed financing for a PPA plant while limiting the amount of equity dilution to shareholders.
Downstream LFP Manufacturing Partnerships
The Company negotiated agreements with various LFP production technology providers for downstream offtake for its PPA production and to service various LFP market segments:
Local Supply Chain Development
Through Comité de maximisation des retombées économiques regionals (“CMAX”), the Company has created direct relationships with businesses, contractors and suppliers in the Saguenay-Lac-St-Jean region of Quebec that have experience with large-scale industrial projects.. The Company has obtained regional major project status from CMAX:
Indigenous Community Involvement
CEO, John Passalacqua, and Chief Geologist, Gilles Laverdière, have personally visited all three local Innu communities (Essipit, Mastheuiatsh, Pessamit) and met with local leadership to present the project and to establish dialogue. Innu First Nations mining executive, Armand Mackenize, was appointed to the advisory board of the Company. Groupe Conseil Nutshimit-Nippour was hired for social and environmental impact analysis; and First Nations Drilling was engaged for exploration activities:
Clean Power from Quebec Hydro
The Company submitted formal requests to Quebec Hydro in 2023 for the allocation of clean electricity to the PPA and LFP facilities as well as requested consideration to return electricity to the hydro grid should a sulfuric acid plant be built at the Port of Saguenay. The Company’s requests are with Hydro Quebec Lots #2 and #3 and awaiting response.
https://www.hydroquebec.com
Quebec Critical-Strategic Minerals List and Government Awareness
In January 2024, in response to advocacy by the Company and others, the Quebec Government recognized apatite (phosphate) as a critical and strategic mineral. Furthermore, the Company received a strong letter of support for its activities and its planned PPA plant from Mario Simard, Member of Parliament for the local riding of Jonquière, Québec, vice-chair of Parliament’s Standing Committee on Natural Resources and critic for natural resources for the Bloc Québécois.
https://firstphosphate.com/mariosimard.pdf
Battery Ecosystem Development and Validation of the Company’s Business Model
On January 30, 2024, Arianne Phosphate (DAN: TSXV) announced that “it has commenced work on a Prefeasibility Study to construct a downstream purified phosphoric acid plant in the region” and “allow the Saguenay region to establish itself within the global battery ecosystem.” First Phosphate looks forward to working with all interested parties in generating awareness and support for, and building the infrastructure necessary to realize its vision of developing the Saguenay-Lac-Saint-Jean Region of Quebec into the LFP battery valley of North America.
About First Phosphate Corp.
First Phosphate is a mineral development company fully dedicated to extracting and purifying phosphate for the production of cathode active material for the Lithium Iron Phosphate (“LFP”) battery industry. First Phosphate is committed to producing at high purity level, in responsible manner and with low anticipated carbon footprint. First Phosphate plans to vertically integrate from mine source directly into the supply chains of major North American LFP battery producers that require battery grade LFP cathode active material emanating from a consistent and secure supply source. First Phosphate holds over 1,500 sq. km of royalty-free district-scale land claims in the Saguenay–Lac-St-Jean Region of Quebec, Canada that it is actively developing. First Phosphate properties consist of rare anorthosite igneous phosphate rock that generally yields high purity phosphate materially devoid of high concentrations of harmful elements.
For additional information, please contact:
Bennett Kurtz, CFO
bennett@firstphosphate.com
Tel: +1 (416) 200-0657
Investor Relations: investor@firstphosphate.com
Media Relations: media@firstphosphate.com
Website: www.FirstPhosphate.com
Follow First Phosphate:
Twitter: https://twitter.com/FirstPhosphate
LinkedIn: https://www.linkedin.com/company/first-phosphate
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