Canadian Phosphate Ltd (ASX: CP8) has announced it has received firm commitments to raise A$2.0 million through a strategic share placement. The company, focused on sedimentary rock phosphate exploration in North America, will issue 40,000,000 ordinary shares at A$0.05 per share to new and existing shareholders. Canadian Phosphate holds some of the largest sedimentary, high-grade, low impurity rock phosphate assets in Canada, with its Wapiti and Fernie projects located near the Western Prairies of BC and Alberta, a major agricultural region.
The placement follows Canadian Phosphate’s Letter of Intent (LOI) with Novaphos Inc to potentially utilise Novaphos’ proprietary, next-generation production technology to produce high-grade phosphoric acid for use in the liquid fertiliser and LFP battery materials sectors. Proceeds from the placement will be used to advance its Wapiti and Fernie phosphate projects in British Columbia, Canada. This includes executing the initial stage of the proposed drill program at Wapiti following permit approval and updating the Wapiti Geological Model and subsequent Mineral Resource Estimate.
Funds will also facilitate industrial mineral quarry permitting costs and advancing the definition of an Exploration Target at Fernie. The company intends to begin drilling at Wapiti once an exploration permit is secured and complete the Fernie Exploration Target in 2026. Blackwood Capital acted as Lead Manager for the Placement and will receive a fee of 6% (excl. GST) on funds raised.
Canadian Phosphate Managing Director Daniel Gleeson stated that the strong support from investors reflects the market’s confidence in the quality of their assets and strategy. He also noted the growing recognition that Canadian Phosphate is advancing projects that sit at the centre of critical North American supply chains for fertilizer and LFP battery materials.
