Saguenay, Quebec -
Newsfile Corp. - January 17, 2025 - First Phosphate Corp. (CSE: PHOS) (OTCQB: FRSPF) (FSE: KD0) ("
First Phosphate" or the "
Company") is pleased to announce it has filed on SEDAR+ its Preliminary Economic Assessment ("
PEA") Technical Report on the Bégin-Lamarche Phosphate Project (the "
Property" or the "
Project") located 75 km northwest of Saguenay, Quebec, Canada.
The PEA provides a potentially viable case for developing the Property
by open pit mining for the primary production of a phosphate concentrate
and secondary recovery of magnetite concentrate.
Highlights of the PEA (all dollar amounts are in Canadian dollars on a 100% project ownership basis unless otherwise indicated):
-
- The Project would produce an annual average of 900,000 tonnes of beneficiated phosphate concentrate at 40% P2O5 content and 380,000 tonnes of magnetite at 92% Fe2O3 content over a 23-year mine life.
-
- The Project would generate a pre-tax internal rate or return (IRR)
of 37.1% and a pre-tax net present value (NPV) of $2.100 Billion at an
8% discount rate at an approximate 3-year trailing average phosphate
price plus a premium for purity and potential secure source of supply,
and a 2-year trailing average magnetite price plus a premium for purity.
-
- The Project would generate an after-tax internal rate or return
(IRR) of 33.0% and an after-tax net present value (NPV) of $1.590
Billion at an 8% discount rate.
-
- The Project would generate an after-tax cash flow of $700 Million in
years 1 to 3, resulting in a 2.9-year payback period from start of
production. Pre-tax cash flow in years 1 to 3 is $783 Million for a
2.6-year payback period.
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- The Project benefits from adjacent paved provincial road access and
nearby electrical power line, and year-round accessible deep-sea Port of
Saguenay at approximately 85 km driving distance. Initial capex for the
Project is estimated at $675 million.
-
- The PEA used Indicated and Inferred Mineral Resources in its calculations.
-
- The Project has no outstanding royalties or financing streams registered against it.
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- 3D deposit model:
https://firstphosphate.com/BeginLamarche3D
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- A copy of the PEA can be found at the Company website at:
https://firstphosphate.com/projects/begin-lamarche
The PEA is considered by P&E Mining Consultants Inc. to meet the
requirements as defined in Canadian National Instrument 43-101 Standards
of Disclosure for Mineral Projects. This PEA is preliminary in nature
and includes Inferred Mineral Resources that are considered too
speculative geologically to have the economic considerations applied to
them that would enable them to be classified as Mineral Reserves, and
there is no certainty that the PEA will be realized. Mineral Resources
are not Mineral Reserves and do not have demonstrated economic
viability. There is no guarantee that First Phosphate will be successful
in obtaining any or all of the requisite consents, permits or
approvals, regulatory or otherwise, for the Project to be placed into
production. The PEA has an effective date of December 4, 2024, and the
Technical Report is dated January 17, 2025.
The detailed results of the PEA were previously reported in the
Company's news release dated December 4, 2024, and there are no
differences in the PEA Technical Report from those results.
The PEA Technical Report titled "
Preliminary Economic Assessment of the Bégin-Lamarche Phosphate Property, Saguenay-Lac-Saint-Jean Region, Northern Quėbec" can be found on SEDAR+ (http://www.sedarplus.ca/) and the Company's website at
www.FirstPhosphate.com.
The PEA was led by P&E Mining Consultants Inc. with contributions from BBA Inc.
Qualified Persons
The Qualified Persons responsible for the PEA Technical Report are as follows:
-
Andrew Bradfield, P.Eng. (P&E Mining Consultants Inc.),
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Eugene Puritch, P.Eng., FEC, CET (P&E Mining Consultants Inc.),
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Antoine Yassa, P.Geo. (P&E Mining Consultants Inc.),
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D. Grant Feasby, P.Eng. (P&E Mining Consultants Inc.)
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John Henning, Ph.D, P.Eng. (BBA Inc.),
-
Hugo Latulippe, P.Eng. (BBA Inc.),
The scientific and technical disclosure in this news release has been
reviewed and approved by Gilles Laverdière, P.Geo. Chief Geologist of
First Phosphate and Eugene Puritch, P.Eng., FEC, CET, President of
P&E Mining Consultants Inc., both Qualified Persons under National
Instrument 43-101
- Standards of Disclosure of Mineral Projects ("NI 43-101"). Mr. Puritch is independent of First Phosphate.
Restricted Share Units ("RSUs")
The Company has also granted 70,000 RSUs of the Company ("RSUs") to an
eligible consultants of the Company. The RSUs vest on February 28, 2025.
About P&E Mining Consultants Inc.
P&E was established in 2004 and provides geological and mine
engineering consulting reports, Mineral Resource Estimate Technical
Reports, Preliminary Economic Assessments and Pre-Feasibility Studies.
P&E is affiliated with major Toronto area based consulting firms for
the purposes of joint venturing on Feasibility Studies.
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
Follow First Phosphate:
Twitter:
https://twitter.com/FirstPhosphate
LinkedIn:
https://www.linkedin.com/company/first-phosphate
-30-
Forward-Looking Information and Cautionary Statements
This news release contains certain statements and information that
may be considered "forward-looking statements" and "forward looking
information" within the meaning of applicable securities laws. In some
cases, but not necessarily in all cases, forward-looking statements and
forward-looking information can be identified by the use of
forward-looking terminology such as "plans", "targets", "expects" or
"does not expect", "is expected", "an opportunity exists", "is
positioned", "estimates", "intends", "assumes", "anticipates" or "does
not anticipate" or "believes", or variations of such words and phrases
or statements that certain actions, events or results "may", "could",
"would", "might", "will" or "will be taken", "occur" or "be achieved"
and other similar expressions. In addition, statements in this news
release that are not historical facts are forward looking statements,
including, among other things,: the Company's planned exploration and
production activities; the properties and composition of any extracted
phosphate; the Company's plans for vertical integration into North
American supply chains; the calculation of mineral resources at the
project and the possibility of eventual economic extraction of minerals
from the Project; the projected yearly production profile from
operations; life of mine sustaining costs; process plant throughput and
average grades; the projected economics of the Project, including total
sales, premiums, margins, taxes, average annual production; the net
present value of the Project; the internal rate of return on the
Project; Project payback period, average yearly free cash flow, life of
mine unit costs, projected mine life, the total initial capital and
sustaining capital costs; and the project design, including the location
of the tailings management facility, process plant, infrastructure
area, stockpile areas, remediation plans and the proposed mine and
transportation plans.
These statements and other forward-looking information are based on
assumptions and estimates that the Company believes are appropriate and
reasonable in the circumstances, which may prove to be incorrect,
include, but are not limited to, the various assumptions set forth
herein and in the Company's public disclosure record including the short
form base prospectus dated June 5, 2024, as well as: there being no
significant disruptions affecting the activities of the Company or
inability to access required Project inputs; permitting and development
of the Project being consistent with the Company's expectations; the
accuracy of the current mineral resource estimates for the Company and
results of metallurgical testing; certain price assumptions for P2O5 and Fe2O3;
inflation and prices for Project inputs being approximately consistent
with anticipated levels; and the Company's relationship with
Pekuakamiulnuatsh Takuhikan First Nation and other Indigenous parties
remaining consistent with the Company's expectations.
There can be no assurance that such statements will prove to be
accurate, and actual results and future events could differ materially
from those anticipated in such statements. There can be no assurance
that any opportunity will be successful, commercially viable, completed
on time or on budget, or will generate any meaningful revenues, savings
or earnings, as the case may be, for the Company. In addition, the
Company will incur costs in pursuing any particular opportunity, which
may be significant. These factors and assumptions are not intended to
represent a complete list of the factors and assumptions that could
affect the Company and, though they should be considered carefully,
should be considered in conjunction with the risk factors described in
the Company's other documents filed with the Canadian and United States
securities authorities, including without limitation the "Risk Factors"
section of the Company's Management Discussion and Analysis dated
October 23, 2024 and Annual Report on 20-F dated July 8, 2024, which are
available on SEDAR at www.sedarplus.ca.
Although the Company has attempted to identify factors that would cause
actual actions, events or results to differ materially from those
disclosed in the forward-looking information or information, there may
be other factors that cause actions, events or results not to be as
anticipated, estimated or intended. The Company does not undertake to
update any forward-looking information, except in accordance with
applicable securities laws.
Certain forward-looking statements in this press release may also
constitute a "financial outlook" within the meaning of applicable
securities laws. A financial outlook involves statements about the
Company's prospective financial performance, financial position or cash
flows and is based on and subject to the assumptions about future
economic conditions and courses of action and the risk factors in
relation to such financial outlook noted in this press release. Such
assumptions are based on management's assessment of the relevant
information currently available, and any financial outlook included in
this press release is provided for the purpose of helping readers
understand the Company's current expectations and plans for the future.
Readers are cautioned that reliance on any financial outlook may not be
appropriate for other purposes or in other circumstances and that the
risk factors described above, or any other factors may cause actual
results to differ materially from any financial outlook. The actual
results of the Company's operations will likely vary from the amounts
set forth in any financial outlook and such variances may be material.
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