First Phosphate federal funding provides further support for Bégin-Lamarche project, says Noble Capital Markets

First Phosphate Corp. (CSE:PHOS, OTCQX:FRSPF, FRA:KD0, OTC:FPHOY)’s C$4.84 million in new federal funding for infrastructure planning at its Bégin-Lamarche phosphate project in Quebec was welcomed by Noble Capital Markets analysts, who maintained an ‘Outperform’ rating on the company.

The analysts wrote that the federal funding “underscores the government's confidence in the project and provides additional assurance to investors and strategic partners regarding the company's ability to advance development.”

The non-repayable funding comes through Natural Resources Canada’s First and Last Mile Fund and builds on the C$16.7 million previously awarded to First Phosphate by NRCan in March 2026. Under the latest agreements, the funding will support eligible project activities through 2030.

Approximately C$3.07 million will support studies and design for a 161-kilovolt power transmission line and substations, while approximately C$1.77 million will support planning for a new mine access road and evaluating upgrades to bypass roads.

The road infrastructure work is intended to support transportation between Bégin-Lamarche and regional infrastructure, including rail links and the Port of Saguenay.

Both initiatives will include technical, environmental and economic studies, engineering design and consultation with Indigenous communities and the public.

The analysts wrote that the investments are intended to improve the infrastructure needed to develop the Bégin-Lamarche phosphate deposit while strengthening Canada’s critical minerals supply chain.

“First Phosphate stands out among development-stage critical minerals companies with no debt and ~C$50 million of available capital, including over $30 million of cash and access to a C$21.5 million non-repayable contribution by the Canadian government,” the analysts wrote.

“This provides funding to advance through its feasibility study, permitting, and a final investment decision without requiring additional equity financing and represents a significant competitive advantage relative to many junior mining companies that remain dependent upon frequent equity financings.”

Along with the ‘Outperform’ rating, the analysts have a US$2 price target on the stock, which implies upside from the price at the time of writing of US$1.18.

“Our rating reflects that First Phosphate is still in the pre-revenue, PEA-stage of development and will require significant capital to construct both the mine and downstream PPA and iron-phosphate precursor facilities,” Noble’s analysts wrote.

“However, we believe the combination of high-purity feedstock, strong infrastructure positioning at Port Saguenay, demonstrated pilot-scale conversion capability, and increasing alignment with Canadian and US critical-minerals policy supports a constructive medium-term outlook.