PhosCo Ltd (ASX: PHO) has achieved a significant milestone by securing 100% ownership of the Gasaat Phosphate Project in Tunisia. This move marks a pivotal step towards PhosCo becoming a global fertilizer supplier. The Gasaat Project, double the size of the original Chaketma project, already hosts a substantial JORC Resource of 146.4Mt at 20.6% P2O5. The mineralisation remains open, with numerous drilling targets identified.
To accelerate project development, PhosCo has launched a fully underwritten A$5.0 million entitlement offer. Directors and major shareholder Lion Selection Group Ltd (ASX: LSX) have committed to priority sub-underwriting commitments totaling $3.25 million. Lion Selection Group and Managing Director, Taz Aldaoud, will also advance a $1.5 million loan to fast-track work on Gasaat and Sekarna.
PhosCo has also signed a Mandate Letter with the European Bank for Reconstruction & Development (EBRD) for a potential US$5.0 million strategic investment. These funds will contribute towards a Gasaat Bankable Feasibility Study (BFS). The indicative terms include an investment amount of US$5 million at a price of A$0.05/share, customary minority rights, and the right to appoint a Director.
A major drilling program is set to commence immediately, including extensional drilling at Gasaat and scout drilling at the Sekarna prospect. The drilling aims to expand PhosCo’s total inventory and forecast production rate ahead of the BFS. Phosphate expert Sam Lancuba has been appointed to PhosCo Board, adding 45 years of global fertilizer industry experience.
The Gasaat project benefits from strong government and community support, with communities set to benefit from a 10% project participation arrangement. PhosCo is seeking to immediately recommence field work, focusing on areas of upside identified in the 2022 scoping study, with key work streams including mapping, trenching, and exploration drilling. The funds will be used to undertake exploration work, carry out metallurgical test work, and update the scoping study with respect to the Company’s Gasaat and Sekarna Exploration Permits, cover the costs of the Offers and add to working capital.
