First Phosphate CEO discusses Agnico Eagle’s $94M move into phosphate market - ICYMI

First Phosphate Corp. (CSE:PHOS, OTCQX:FRSPF, FRA:KD0, OTC:FPHOY) CEO John Passalacqua talked with Proactive astir the implications of Agnico Eagle Mines’ subsidiary acquiring Fox River Resources for $94 cardinal and what the determination means for the phosphate and LFP artillery sectors.

Passalacqua explained that the transaction represents important validation for the igneous phosphate marketplace successful North America, peculiarly arsenic Agnico Eagle is traditionally known arsenic 1 of the world’s largest golden producers.

Proactive: Welcome backmost wrong our Proactive newsroom, and joining maine present is John Passalacqua, CEO of First Phosphate Corp. John, it’s bully to spot you again. How are you?

John Passalacqua: Yeah, I’m great. Good to spot you.

Some absorbing quality is happening successful your sector. Agnico Eagle Mines’ subsidiary Avenir Minerals precocious paid $94 cardinal for Fox River Resources. That reduces the fig of companies doing what you do. What was your archetypal reaction?

I deliberation it’s great. We invited Agnico Eagle into the space. It’s rather a departure for the institution from golden into fertilizer phosphate and perchance LFP batteries. It’s large to person a caller subordinate with heavy pockets. Agnico Eagle is doing precise good with its golden projects arsenic the world’s second-largest golden producer, truthful it has tons of escaped cash. It’s bully for the assemblage and shows superior is going to enactment phosphate projects. There are lone 3 igneous phosphate projects successful North America. Two are associated with igneous anorthosite sites similar First Phosphate, and 1 is the carbonate-type task Agnico Eagle acquired successful Ontario.

Do you recognize the reasoning down the determination from golden into this sector? Do they spot the aboriginal accidental successful artillery metals and storage?

On 1 manus it’s puzzling, but connected the different it validates our thesis. Phosphate represents 60% of the cathode successful LFP batteries, portion lithium is lone 4%. There’s a large aboriginal for phosphate successful North America, particularly igneous phosphate, which is needed to onshore the LFP artillery proviso chain. In the acquisition property release, Avenir Minerals cited fertilizer and imaginable LFP opportunities arsenic reasons for the acquisition. We’ve been saying phosphate is the caller golden of the vigor transition, truthful it’s bully to spot a institution similar Agnico Eagle validate that.

When a institution of that size enters a caller area, however does it impact the remainder of the market? Do larger companies commencement paying much attraction to projects similar yours?

I deliberation so. If you look astatine the remaining companies successful the sector, we’ve had immoderate of the strongest banal appreciation since the acquisition. Nothing has changed fundamentally with our institution — we’ve been discussing this accidental for 3 years. But having the world’s second-largest golden shaper participate the abstraction is exceptional validation. Even probe analysts haven’t afloat picked up connected the value yet. There’s lone been 1 study written connected the acquisition truthful far. Agnico Eagle is not known for making whimsical purchases, truthful I judge there’s a wide strategy down this move.