Mineral development company First Phosphate Corp has signed two long-term offtake agreements with creditworthy offtake partners with respect to its future production from operations at Saguenay-Lac-St-Jean, Quebec, Canada, thereby derisking its future projects and enhancing their prospective financing.

The definitive terms of the offtake agreements will be finalised in separate agreements to be entered into between the parties. The agreements contain termination rights by the offtakers if the first delivery of product is not made by a certain date unless the parties agree to an extension, as well as other normal course termination provisions.

The start of the industrial operations proposed by First Phosphate are subject to a number of conditions, including permitting and financing which the company continues to work towards diligently.

In addition, the company is also entering the next phase of discussions with the Pekuakamiulnuatsh First Nation regarding a possible financial involvement in the company, as provided for in the collaboration agreement signed by the First Nation and the Company in April.

"First Phosphate is achieving its goals as it continues to build a trusting relationship with the First Nation, which is committed to supporting the development of the project in a way that respects its values," says First Phosphate CEO John Passalacqua.

First Phosphate is developing the Bégin-Lamarche property in Saguenay-Lac-St-Jean. A preliminary economic assessment published earlier this month estimates average production of 900 000 t of beneficiated phosphate concentrate and 380 000 t of magnetite over a 23-year mine life.

The phosphate will be used to produce cathode active material for use in the lithium iron phosphate battery industry.

In a separate announcement, the company says it plans to raise $1-million through a nonbrokered private placement that is due to close on or before December 31.

A portion of the proceeds will be used for exploration and development activities, working capital and for general corporate purposes.