Home / Business and Economy / Quebec Phosphate Mine Secures Major Swiss Funding
Quebec Phosphate Mine Secures Major Swiss Funding
18 Sep
Summary
- First Phosphate received $212.5M support from Swiss Export Risk Insurance.
- This funding is for an igneous phosphate mine in Quebec.
- The project aims to build North America's LFP battery supply chain.
First Phosphate Corp. has announced a significant development for its Quebec-based igneous phosphate project. The company received a Letter of Support from Swiss Export Risk Insurance (SERV) for approximately US$212.5 million. This commitment is intended to aid in financing the construction of its mine and processing facility in Saguenay-Lac-St-Jean, Quebec.
SERV is prepared to provide insurance and guarantees for buyer credit financing, potentially covering up to 85% of an assumed export contract value of US$250 million. This support mechanism adheres to OECD guidelines, which allow for coverage of eligible Swiss export contracts and associated local costs. First Phosphate is working to ensure sufficient project sourcing from Switzerland to meet coverage requirements.
This latest backing from SERV adds to existing financial commitments from various European and North American export credit agencies. First Phosphate is strategically building a vertically integrated supply chain for LFP battery production in North America, anchored by its high-quality, low-impurity igneous phosphate resource in Quebec.
The positive news contributed to a roughly 16% surge in First Phosphate's shares on Wednesday in both Canadian and US markets.
