- 01STUDI to partner on Gasaat feasibility work.
- 02Proposed $1.4m investment for shares and options.
- 03Updated study due this month; drilling extends DOH.
PhosCo (ASX: PHO) has brought Tunisian engineering group STUDI International (STUDI) into the development of its 100%-owned Gasaat phosphate project under a memorandum of understanding (MOU) accompanied by a proposed $1.4 million strategic investment.
The partnership positions STUDI as PhosCo’s preferred engineering partner for the project’s pre-feasibility study and bankable feasibility study, with scope to continue through detailed engineering, procurement, construction support, commissioning, and future expansion.
Subject to final legal documentation, STUDI will subscribe for 9,523,810 PhosCo shares at $0.15 each and receive an equal number of attaching options exercisable at $0.20 until 29 June 2029.
The MOU establishes a 24-month framework, extendable by mutual agreement, for PhosCo and STUDI to work together across feasibility studies, infrastructure planning, project management, financing, procurement, and the wider development pathway for Gasaat.
The agreement comes as PhosCo advances an updated Gasaat scoping study targeted for release later this month and continues drilling that this week extended the DOH discovery and identified phosphate mineralisation at Sekarna North.
Regional Engineering Capability
STUDI has operated since 1970, employs around 700 people, and has delivered projects across more than 40 African countries, with relevant experience spanning ports, transport, water, energy, construction, and project finance advisory.
PhosCo retains discretion over individual work packages and can appoint specialist mining consultants or other firms where required, while a joint senior committee will review feasibility planning, infrastructure strategy, schedules, procurement, financing and stakeholder engagement.
“STUDI is uniquely placed to help us develop Gasaat with immense experience in project development throughout Africa and the important home ground advantage of being Tunisian,” managing director Taz Aldaoud said.
“We believe that this relationship has the ability to transverse the initial project studies and beyond as we aim to deliver a globally significant regional phosphate hub.”
STUDI Gasaat Investment
STUDI’s proposed investment will be made through one of its African subsidiaries, with the 9,523,810 new shares and matching options to be issued under PhosCo’s existing placement capacity.
Final legal documentation is expected within 30 days, after which placement proceeds are intended to support continuing exploration and studies at Gasaat, permitting activities and general working capital.
The MOU itself is non-binding and does not require PhosCo to award, or STUDI to accept, any specific engagement.
Separate agreements are to be negotiated for individual work streams on arm’s-length terms.
PhosCo’s ownership, permits, data and other Gasaat assets remain unchanged, while either party can terminate the framework on 90 days’ written notice and there is no certainty that definitive agreements will be reached.
DOH and Sekarna North Drilling
Earlier this week, diamond drilling extended phosphate mineralisation at DOH, where the first two holes in the latest program intersected 8.1 metres and 9.0m of phosphate ahead of a maiden mineral resource estimate, with assays for both intersections still pending.
The current program follows nine previously reported DOH holes and is intended to support the MRE, which could add to Gasaat’s resource inventory and help optimise the project’s scale and mine life.
At Sekarna North, about 10km from Gasaat, the first two scout holes drilled by PhosCo in that part of the permit intersected 6m and 7.4m of phosphate, with assays also pending and the results supporting the company’s regional processing-hub concept.
PhosCo noted that DOH mineralisation dips about 25 degrees east while the holes are vertical, meaning reported intercept widths are exaggerated, providing an important qualification to the lengths reported from the latest drilling.
Drilling remains ongoing while PhosCo is targeting the updated Gasaat scoping study for October, with progression towards a BFS, continued financier and offtake engagement, and a targeted mid-2028 first production date forming its stated development pathway.
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