Australian Mining Firm PhosCo Strengthens Tunisia’s Gasaat Phosphate Project with Strategic Partnership

PhosCo has significantly bolstered its Gasaat phosphate project in Tunisia by signing a non-binding Memorandum of Understanding (MoU) with STUDI International, a leading Tunisian engineering group. The agreement includes a strategic investment of USD 1.4 million by STUDI into PhosCo’s capital, marking a pivotal step in the project’s development.

Strategic Collaboration on Project Studies

The primary focus of the MoU is to support PhosCo in advancing the technical studies for the Gasaat project. STUDI International will provide expert assistance in completing:

• The Pre-Feasibility Study (PFS)
• The Bankable Feasibility Study (BFS)

This collaboration is designed to extend beyond the initial studies, potentially covering all subsequent phases of project development, including:

• Detailed engineering
• Procurement
• Construction
• Commissioning

Infrastructure and Environmental Scope

STUDI International’s involvement is expected to span a wide range of critical infrastructure components essential for the project’s success. Key areas include:

• Energy and Water Systems: Development and integration of power and water supply networks.
• Transportation Infrastructure: Road networks, railway transport, and port facilities.
• Environmental and Urban Planning: Compliance with environmental regulations, urban planning considerations, and the implementation of Geographic Information Systems (GIS).

Financial Investment and Capital Raise

In parallel with the technical collaboration, an African subsidiary of STUDI will subscribe to 9.52 million new shares of PhosCo at a price of USD 0.15 per share. This transaction will enable PhosCo to raise USD 1.4 million (before expenses).

Additionally, the agreement includes the grant of 9.52 million options, with one option issued for each share subscribed. These options will be exercisable at USD 0.20 per share until June 29, 2029.

PhosCo has stated that the raised funds will be allocated to:

1. Continuing exploration and technical studies for the Gasaat project.
2. Financing permit-related processes.
3. Covering general corporate expenses.

Strategic Context and Next Steps

This partnership comes at a critical juncture as the Gasaat project enters a new phase of detailed studies. STUDI International brings extensive experience in engineering and infrastructure development, having operated in Tunisia and across the African continent since its founding in 1970. The group currently maintains a presence in over 40 African countries.

Key Terms of the Agreement

• Nature: Non-binding framework for collaboration.
• Duration: 24 months, with the possibility of renewal.
• Future Contracts: Specific work orders will be formalized through separate contracts between the two parties.

Upcoming Milestone

PhosCo has announced that the next major milestone is the publication of the updated Scoping Study for the Gasaat project, expected later this month. This study is anticipated to provide new insights into the project’s development potential and commercial viability.

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About PhosCo PhosCo is an Australian mining company focused on the development of phosphate resources, with its flagship project located in Tunisia.

About STUDI International Founded in 1970, STUDI International is a prominent Tunisian engineering and infrastructure group with a strong presence in over 40 African countries, specializing in complex industrial and civil engineering projects.