The process could give the company, which has been under creditor protection since September 2013, ownership of a larger share of the scarce radio frequencies prized by telecommunications companies.
Mobilicity has asked the Ontario Superior Court of Justice to approve a funding that would allow it to place a refundable deposit of about $62 million required to take part in the auction.
An affidavit filed by the company on Monday said its current backers have provided up to $65 million of debtor-in-possession financing.
Both applications and the deposit required to participate must be submitted by Friday.
Rules created by the federal government reserve 60 per cent of new spectrum for carriers other than the Big Three, which means Mobilicity and Wind Mobile will be the only two carriers bidding on the licences, if the court approves the application.
Mobilicity plans to create a subsidiary with the sole purpose of participating in the auction.
The auction of AWS-3 spectrum, or advanced wireless services, covers wireless frequencies in Ontario, Alberta and British Columbia.
The bidding process is scheduled to begin March 3.