First Phosphate Corp. Signs MOU with Prayon, Global Leader in Purified Phosphoric Acid Production and Technology
First Phosphate Corp. Signs MOU with Prayon,
Global Leader in Purified Phosphoric Acid
Production and Technology
Saguenay, Quebec--(Newsfile Corp. - February 24, 2023) - First Phosphate Corp. (CSE: PHOS) (FSE:
KD0) ("First Phosphate" or the "Company") is pleased to announce that it has signed a memorandum of
understanding ("MOU") dated February 23, 2023 with Prayon SA of Engis, Belgium ("Prayon"), Europe's
largest producer of purified phosphoric acid.
In order to accelerate First Phosphate's integration plan for the North American lithium iron phosphate
(LFP) battery industry, the MOU engages the parties to collaborate towards assessing feasibility and
potential partnership in the following areas:
Phosphate Concentrate Production and Offtake
LFP Grade Phosphoric Acid Toll Processing
License for LFP Grade Phosphoric Acid Production Facility
Development of LFP Cathode Active Material Manufacturing Plant
Phosphate Concentrate Production and Offtake
First Phosphate and Prayon have committed to study the potential of a long-term offtake agreement.
Prayon requires phosphate concentrate and is interested to purchase concentrate from First
Phosphate's eventual mining operations subject to specifications. Such feedstock would be transformed
into merchant grade phosphoric acid (MGA) and subsequently into purified phosphoric acid (PPA) at the
Prayon plant located in Engis, Belgium.
LFP Grade Phosphoric Acid Toll Processing
First Phosphate and Prayon have agreed to study the potential of a long-term purified phosphoric acid
toll processing agreement.
LFP Grade Phosphoric Acid Production Facility
First Phosphate contemplates the development of its own fully dedicated, captive-use LFP battery grade
phosphoric acid production facility. First Phosphate and Prayon have agreed to discuss the terms and
conditions of a license for Prayon's technological expertise in the manufacture of merchant grade and
LFP grade phosphoric acid to permit First Phosphate to establish its own phosphoric acid facilities in
Quebec, Canada. The manufacturing methodology would be based on Prayon's most environmentally
friendly, safe and solvent-less processing clean technologies that include options for full gypsum
recycling.
LFP Cathode Active Material Manufacturing Project
Prayon has familiarity in the production of LFP Cathode Active Material and has expressed interest in
collaboration with First Phosphate to study the feasibility of an LFP Cathode Active Material production
facility of North American market scope based in Quebec, Canada.
"The LFP battery already represents a leading globally accepted battery chemistry but still has limited
domestic manufacturing supply in Europe and North America. Today's announcement sows the seeds to
onshore that production capacity in North America," says First Phosphate President Peter Kent. "Let's
not forget that LFP battery technology was originally developed decades ago in a partnership with
researchers in Quebec, Canada, the United States and Europe."
"We are pleased to co-operate with First Phosphate and to test implement our recognized technologies
for the production and treatment of high grade phosphoric acid intended to supply the LFP battery
industry in North America," said Prayon Chief Technology Officer, Marc Collin. "The opportunity of
partnership with First Phosphate is an important step in our global diversification initiatives."
First Phosphate and Prayon are building a strategic transatlantic relationship to enable Europe and
North America to gain green energy and critical mineral independence. The parties plan to continue to
work in cooperation with the Quebec, Canadian, United States, Walloon, Belgian and European
governments to this end.
Neither the Canadian Securities Exchange ("CSE") nor its Market Regulator (as such term is defined in
the CSE policies) has reviewed or accept responsibility for the adequacy or accuracy of this news
release.
-30-
For additional information, please contact:
Pierre Cossette
VP, Corporate Affairs
Tel:
+1 (514) 791-9280
Investor Relations:
Media Relations:
Website:
www.FirstPhosphate.com
Follow First Phosphate:
Twitter:
https://twitter.com/FirstPhosphate
LinkedIn:
https://www.linkedin.com/company/first-phosphate/
About First Phosphate Corp.
First Phosphate 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, at full ESG standard 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 holds over 1,500 sq.
km of total land claims in the Saguenay-Lac-St-Jean Region of Quebec, Canada that it is actively
developing. First Phosphate properties consist of rare anorthosite igneous phosphate rock that generally
yields high purity phosphate material devoid of high concentrations of harmful elements.
About Prayon SA
Headquartered in Belgium, Prayon is a world-leading phosphate research, development and production
company. Prayon has 1,400 employees and over 140 years of business experience. The Prayon Group
has production sites in Belgium, France, Switzerland and the United States, research and development
sites in Belgium and a testing and validation facility in Bulgaria (Technophos). OCP and Wallonie
Entreprendre (WE) are Prayon's two shareholders. OCP is the Moroccan state-owned phosphate rock
miner, phosphoric acid manufacturer and fertilizer producer. OCP operations span five continents
throughout the value chain, from mining and manufacturing to education and community development.
WE is a public sector private-equity group that aims to accelerate the growth and transformation of
Walloon businesses for the benefit of economic development and employment in Wallonia, Belgium.
Forward-Looking Information and Cautionary Statements
Certain information in this news release constitutes forward-looking statements under applicable
securities laws. Any statements that are contained in this news release that are not statements of
historical fact may be deemed to be forward-looking statements. Forward-looking statements are often
identified by terms such as "may", "should", "anticipate", "expect", "potential", "believe", "intend" or
the negative of these terms and similar expressions. Forward-looking statements in this news release
include statements relating to: the Company's commitment to producing high purity phosphate
materials at full ESG standard under a low carbon footprint; the Company's plans to integrate directly
into the functions of certain major North American LFP Battery producers; the Company's proposed
development of its land claims in the Saguenay Region; the entering of the proposed definitive
agreements contemplated by the MOU between the Company and Prayon, and other potential
collaboration and joint ventures between the parties; the announcement of the MOU sowing the seeds
to onshore LFP production capacity in Europe and North America; and that the Company and
Prayon's collaboration will enable Europe and North America to gain green energy and critical
mineral independence and the plans to further this goal through the continued cooperation with the
government entities herein stated.
Forward-looking information in this press release are based on certain assumptions and expected
future events, namely: the Company's ability to producing high purity phosphate materials at full ESG
standard under a low carbon footprint; the Company's ability to integrate directly into the functions of
certain major North American LFP Battery producers; the Company's ability to develop its land claims
in the Saguenay Region; the Company and Prayon will enter into the definitive agreements
contemplated by the MOU, and other potential collaboration and joint ventures between the parties;
the announcement of the MOU will sow the seeds to onshore LFP production capacity in Europe and
North America; and that the Company and Prayon's collaboration will enable Europe and North
America to gain green energy and critical mineral independence and the ability to further this goal
through the continued cooperation with the government entities herein stated.
These statements involve known and unknown risks, uncertainties and other factors, which may cause
actual results, performance or achievements to differ materially from those expressed or implied by
such statements, including but not limited to: the Company's inability to produce high purity
phosphate materials at full ESG standard under a low carbon footprint; the Company's inability to
integrate directly into the functions of certain major North American LFP Battery producers; the
Company's inability to develop its land claims in the Saguenay Region; the Company and Prayon not
entering into any or all of the definitive agreements contemplated by the MOU, or other potential
collaboration and joint ventures between the parties; the announcement of the MOU will not sow the
seeds to onshore LFP production capacity in Europe and North America; and that the Company and
Prayon's collaboration will not enable Europe and North America to gain green energy and critical
mineral independence and the inability to further this goal through the continued cooperation with the
government entities herein stated.
Readers are cautioned that the foregoing list is not exhaustive. Readers are further cautioned not to
place undue reliance on forward-looking statements, as there can be no assurance that the plans,
intentions or expectations upon which they are placed will occur. Such information, although
considered reasonable by management at the time of preparation, may prove to be incorrect and
actual results may differ materially from those anticipated.
Forward-looking statements contained in this press release are expressly qualified by this cautionary
statement and reflect the Company's expectations as of the date hereof and are subject to change
thereafter. The Company undertakes no obligation to update or revise any forward-looking
statements, whether as a result of new information, estimates or opinions, future events or results or
otherwise or to explain any material difference between subsequent actual events and such forward-
looking information, except as required by applicable law.
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/156061