First Phosphate Secures USD 212.5 Million Support for Quebec Phosphate Mine Project

First Phosphate Corp, a mineral exploration and development company, has secured a significant financial backing for its first phosphate mine project in Quebec, Canada. The company has received a Letter of Support from Swiss Export Risk Insurance (SERV) for approximately USD 212.5 million, which will be used to purchase Swiss machinery and equipment and fund the construction of its processing facility.

According to the press release, SERV is prepared to consider insurance/guarantees for a buyer credit financing based on an assumed eligible Swiss export contract value of USD 250 million. This would support a financed amount of approximately USD 212.5 million, corresponding to 85% of the contract value. Should the final eligible Swiss export contract value be higher, SERV would be prepared to consider a correspondingly higher financing amount.

The support from SERV is part of the company's strategy to build and reshore a vertically integrated mine-to-market supply chain for the production of lithium iron phosphate (LFP) batteries in North America. The project, located in Saguenay-Lac-Saint-Jean, Québec, Canada, is expected to source a sufficient portion of its equipment and services from Switzerland to be eligible for SERV coverage. SERV may also seek reinsurance from other export credit agencies for significant portions of the project sourced outside Switzerland.

First Phosphate's flagship Bégin-Lamarche property is a rare North American igneous phosphate resource, known for its high-purity phosphate with very low levels of impurities. The company is dedicated to developing this resource to meet the growing demand for LFP batteries, which are used in various applications including energy storage, data centers, robotics, mobility, and national security.

The support from SERV is seen as a significant milestone for the project, providing the necessary financial backing to move forward with the construction and development of the processing facility.

The company plans to continue its exploration and development activities, leveraging the support from SERV to ensure the project's success. With the backing in place, First Phosphate is poised to make significant strides in the development of its phosphate mine and the production of LFP batteries, contributing to the energy storage and clean technology sectors.