First Phosphate Updates on Corporate Developments, Management Appointments and Insider Stock Purchases
Press Release
Saguenay, Quebec – February 27, 2025 – First Phosphate Corp. (“First Phosphate” or the “Company”) (CSE:PHOS) (OTCQB: FRSPF) (FSE:KD0) is pleased to announce the following corporate updates.
Bégin-Lamarche Phosphate Mine
The Company recently concluded its National Instrument 43-101 (“NI-43-101”) compliant mineral resource estimate (September 2024) and its NI 43-101 compliant Preliminary Economic Assessment (December 2024) for its Bégin-Lamarche property. The Company is in the process of completing its internal pre-feasibility analysis and is readying to launch its formal feasibility study.
Buildout capex for the mine is estimated at US $459 million. Annual mine revenues over 23 years are expected to peak at US $362 million at a 37.1% pre-tax IRR.
In December 2024, the Company announced definitive long-term agreements with creditworthy offtake partners that are not impacted by the current North American trade-tariff situation.
The Company also continues to work towards project financial participation in the Bégin-Lamarche mining project by its indigenous partner, Pekuakamiulnuatsh First Nation.
Phosphoric Acid Facility
In December 2024, the Company concluded licensing and engineering agreements for a 190,000 tonne per annum phosphoric acid facility. The internal pre-feasibility and capex study for the facility has now completed by engineering firm Ballestra S.pA. (though not NI 43-101 compliant).
Buildout capex for the facility is estimated at US $175 million. Revenues from the facility at today’s prices could total $284 million per annum using directly produced apatite concentrate from the Company’s future Bégin-Lamarche phosphate mine. Definitive offtake in place for this facility is not impacted by the current North American trade-tariff situation.
First Saguenay Iron Phosphate Plant
In September, 2024, La Baie, Quebec was chosen as the site for the Company’s First Saguenay iron phosphate facility. The feasibility study for the facility has now been fully completed by Ultion Technologies Inc. (though not NI 43-101 compliant).
Pending financing, First Saguenay is expected to start small-scale production of iron phosphate pre-cursor material in 2026 ramping up to 11,882 tonnes per annum by 2028 with yearly revenues projected at US $53 million. Funding costs for the facility are estimated at US $76 million.
Funding discussions for the facility are ongoing and proceeding as expected. The Company is also waiting for clarity on the impact of the North American trade-tariff situation before assessing its final deployment timelines and rollout plans. Building owner Logistique Proco Inc. has pledged maximum flexibility in terms of lease uptake. The Company has also located various secondary plant development locations in the United States should the North American trade-tariff situation require production facilities in multiple countries.
The Company is currently negotiating definitive supply agreements with major purchasers of LFP CAM materials in various segments of the LFP battery industry.
In November 2024, the Company signed a collaboration agreement with GKN Hoeganaes, a division of GKN Powder Metallurgy and one of the largest iron powder producers globally. GKN will be able to supply the Company with up to 400,000 tonnes of iron powder required to be able to eventually scale iron phosphate pre-cursor using large economies of scale.
GKN Hoeganaes was also successful in integrating the Company’s magnetite (a secondary recovery from its Bégin-Lamarche property) into the GKN proprietary Ancorsteel melting process. This innovative process has led to the development of a high-purity iron powder, which can serve as an input for iron phosphate pre-cursor production. Given, this development, the Company should be in a position to create iron phosphate precursor from both the phosphate and the iron material emanating from its Bégin-Lamarche property to achieve full backwards integration with the mine source.
The commencement of the industrial operations proposed by the Company, including the Bégin-Lamarche phosphate mine, phosphoric acid facility and the First Saguenay iron phosphate facility, are subject to a number of conditions, including permitting and financing which the Company continues to work towards diligently.
Management Appointments
Armand MacKenzie has been promoted to the post of President of the Company and David Dufour to the position of Senior Vice-President.
“Armand and David have proven their abilities to assume team leadership. Armand will lead discussions with our indigenous partner and indigenous financial institutions to ensure we meet our objective of having deep Indigenous financial participation in the Company. David will drive operations and community relations as we begin to enter into the next stages of planning of our feasibility study,” said John Passalacqua, CEO of First Phosphate.
Insider Stock Purchases
Company Chairman, Laurence W. Zeifman, has acquired, through a corporation controlled by him, a total of 40,000 common shares of the Company for $7,475 in the open market since January 1, 2025. Mr. Zeifman has made open market purchases of 359,500 shares for $74,390 since the Company has been publicly listed in February 2023.
Company Independent Director, Peter Nicholson, has acquired, through a corporation controlled by him, a total of 197,500 common shares of the Company for $58,945 in the open market since January 1, 2025. Mr. Nicholson has made open market purchases of 532,000 shares for $146,415 since joining as director in September 2024.
CEO, John Passalacqua, has acquired, through an entity controlled by him, a total of 811,000 common shares of the Company for $262,424.45 in the open market since January 1, 2025. Mr. Passalacqua has made open market purchases of 1,861,500 shares for $507,324 since the Company has been publicly listed in February 2023.
Company management continues to receive 80% of its compensation in the form of RSUs while the Company board of directors receives 100% of its compensation in the form of RSUs. All is done with the intent of keeping capital resources focused on the development of the Company and to have management and board more deeply involved in the ownership structure of the Company.
The Company has approved the grant of 2,658,580 restricted share units of the Company (“RSUs”) to eligible directors, management and staff of the Company as part of compensation expenses for the 6 month period commencing March 1, 2025. The RSUs vest on August 31, 2025 and shares issued under these RSUs will be subject to a hold period of four months plus one day from the date of issuance. The RSUs will be granted in accordance with and subject to the Company’s Omnibus Equity Incentive Plan.
List of Major Accomplishments of the Company in 2024
December 18, 2024: Signed Long-term Offtake Agreements and Interest from Financial Partner
https://firstphosphate.com/offtake
December 4, 2024: Announced PEA for Bégin-Lamarche Property
https://firstphosphate.com/PEA_BLM
December 2, 2024: Signed License Agreement with Global Leader in MGA Phosphoric Acid Technology
https://firstphosphate.com/PAP_license
November 20, 2024: Signed Partnership Agreement with GKN Hoeganaes for LFP Development
https://firstphosphate.com/GKN_FPC
September 18, 2024: Reported Initial Mineral Resource Estimate at Bégin-Lamarche Property
https://firstphosphate.com/MRE
September 9, 2024: Choose Facility for Deployment of Iron Phosphate Plant
https://firstphosphate.com/FirstSaguenay
July 25, 2024: Completion of 25,000 m drill campaign at the Bégin-Lamarche Property
https://firstphosphate.com/25000-m-drill-campaign
May 8, 2024: LOI announced for Rapidwall Housing Manufacturing Plant to Recycle Gypsum
https://firstphosphate.com/RapidWall_FPC
April 17, 2024: Gary Stanley, former U.S. Department of Commerce, Joins the Advisory Board
https://firstphosphate.com/GaryStanley
April 9, 2024: Collaboration Agreement announced with Pekuakamiulnuatsh First Nation
https://firstphosphate.com/pekuakamiulnuatsh
March 13, 2024: MOU signed with Groupe Goyette for Logistics at the Hebertville-Station Intermodal Facility
https://firstphosphate.com/groupe-goyette
March 4, 2024: Mining Research and Innovation Grant received from Quebec Ministry of Natural Resources
https://firstphosphate.com/MNRF
February 28, 2024: MOU signed with Craler for the Development of Global Logistical Competencies
https://firstphosphate.com/craler
February 22, 2024: Received Letter of Support from Mario Simard, Canadian Parliamentary Deputy for the Riding of Jonquière, Québec
https://firstphosphate.com/MarioSimard
February 15, 2024: Joint Development Agreement signed with Integrals Power to Produce Environmentally Compliant Battery Grade Iron III Phosphate Precursor
https://firstphosphate.com/ipl_jda
February 13, 2024: Completed Pilot Production of LFP Battery-Grade Purified Phosphoric Acid
https://firstphosphate.com/phos_acid
January 22, 2024: Closed Oversubscribed Private Placement Financing for Total Proceeds of $8.2 Million
https://firstphosphate.com/privateplacement
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 for the Company and a Qualified Person under National Instrument 43-101 – Standards of Disclosure of Mineral Projects (“NI 43-101”).
About First Phosphate Corp.
First Phosphate (CSE: PHOS) (OTCQB: FRSPF) (FSE: KD0) 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 a 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 is owner and developer of the Bégin-Lamarche Property in Saguenay-Lac-St-Jean, Quebec, Canada that consists of rare anorthosite igneous phosphate rock that generally yields high purity phosphate material devoid of harmful concentrations of deleterious elements.
For additional information, please contact:
Bennett Kurtz
Chief Financial Officer
bennett@firstphosphate.com
Tel: +1 (416) 200-0657
Investor Relations: investor@firstphosphate.com
Media Relations: media@firstphosphate.com
Website: www.FirstPhosphate.com
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