PhosCo Secures Key Approvals and Funding Pathway for Tunisian Phosphate Expansion

Strategic Permit Approvals Unlock Growth Potential

PhosCo Ltd has marked a pivotal quarter with the formal approval of its flagship Gassaat Phosphate Project in Tunisia, a move that significantly enhances its resource footprint and operational control. The Gassaat permit, covering 112 square kilometres, effectively doubles the size of the original Chaketma lease and is free from previous legal encumbrances, granting PhosCo 100% ownership. This approval is a critical step forward after years of stalled progress in Tunisia's Northern Phosphate Basin, a region that holds approximately 70% of the world's phosphate reserves.

Complementing this, the Sekarna Phosphate Project, located just 10 kilometres from Gassaat and sharing similar geology, has also received formal permit grant. This expansion of tenements positions PhosCo to substantially increase its phosphate inventory and production capacity, underpinning its ambition to become a major global fertilizer supplier.

Collaborative Framework with Tunisian Government and EBRD

PhosCo has signed a historically significant non-binding Memorandum of Understanding (MoU) with the Tunisian Ministry of Industry, Mines and Energy and the European Bank for Reconstruction and Development (EBRD). This tripartite agreement aims to foster collaboration on the exploration, funding, and development of Tunisia's Northern Phosphate Basin Hub, including the Gassaat and Sekarna projects.

The MoU signals strong governmental and financial backing, with EBRD poised to assist in financing the upcoming Bankable Feasibility Study and potentially the broader project development. EBRD's involvement brings not only capital but also strategic in-country connections and adherence to stringent environmental and social governance (ESG) standards, aligning with PhosCo's commitment to sustainable mining practices and community engagement.

Upcoming Drilling Program and Technical Leadership

PhosCo plans to initiate a major drilling campaign in the first quarter of 2025, targeting both scout drilling at Sekarna and extensional drilling at Gassaat. This program is designed to expand the company's phosphate resource base and enhance forecast production rates ahead of the Bankable Feasibility Study.

To bolster its technical expertise, PhosCo has appointed Sam Lancuba, a globally recognized phosphate industry expert with over 45 years of experience, as Technical Board Advisor. His extensive background in phosphate beneficiation, processing, and marketing is expected to drive innovation and operational excellence as PhosCo advances its projects.

Financial Position and Community Engagement

While PhosCo reported a modest cash position of approximately A$0.7 million at the end of December 2024, the company has taken proactive measures to conserve cash, including deferral of executive fees. The MoU with EBRD also provides a clear pathway to secure substantial project financing.

PhosCo is committed to delivering tangible benefits to local communities, with plans to allocate 10% project participation to impacted groups through community companies. This approach aligns with Tunisia's social development goals and aims to foster strong local support, which is critical for the project's long-term success.

Outlook

With the formal grant of key permits, a strategic partnership with the Tunisian Government and EBRD, and an imminent drilling program, PhosCo is well positioned to capitalize on the tightening global phosphate market. The company's developments come at a time of increasing geopolitical tensions and finite phosphate supplies, underscoring the strategic importance of its projects.