PhosCo Secures €1M Grant and $1.1M Insider Investment to Accelerate Gasaat BFS
PhosCo has received a €1 million grant from the European Bank for Reconstruction and Development alongside a $1.1 million investment from its Managing Director, fueling optimisation efforts ahead of the Gasaat Phosphate Project’s bankable feasibility study.
- €1 million (A$1.8 million) EBRD grant awarded to PhosCo’s subsidiary Himilco
- Managing Director Taz Aldaoud invests $1.1 million via exercising 21.4 million options
- Funds to accelerate project optimisation including KM discovery integration
- 150 million options to be issued to EBRD, potentially raising $7.5 million subject to approvals
- Support aligns with Tunisia’s phosphate development and community participation goals
EBRD Grant and Insider Investment Signal Confidence
PhosCo Ltd has taken a significant step forward in advancing its Gasaat Phosphate Project in Tunisia, securing a €1 million (approximately A$1.8 million) grant from the European Bank for Reconstruction and Development (EBRD). This funding, awarded through PhosCo’s subsidiary Himilco Pty Ltd, is designed to accelerate key optimisation initiatives ahead of the project’s bankable feasibility study (BFS).
Complementing this external support, PhosCo’s Managing Director, Taz Aldaoud, has committed $1.1 million by exercising 21.4 million options at 5 cents each. This insider investment underscores strong leadership confidence in the project’s potential and aligns management’s interests with shareholders.
Optimising the Gasaat Project with New Discoveries
The combined proceeds will be directed towards incorporating the recently identified KM discovery into the existing resource base and updating the project’s scoping study. The KM discovery is notable for its consistently thick, higher-grade phosphate intersections, a lower strip ratio, and proximity to the proposed processing plant site. These factors are expected to enhance the project’s economics and operational efficiency.
PhosCo’s Gasaat project already boasts a substantial JORC-compliant resource of 146.4 million tonnes at 20.6% P2O5, positioning it as a potentially cost-competitive, long-life phosphate producer. The optimisation work aims to prioritise low-strip deposits and refine mining and processing strategies to maximise value.
Formalising Funding and Future Capital Injection
As part of the funding arrangement, PhosCo will issue 150 million options to EBRD at an exercise price of 5 cents per share. These options, exercisable until either 120 days after the updated scoping study release or 31 January 2028, could raise up to $7.5 million if fully exercised. The issuance is split into two tranches, with 90 million options subject to shareholder approval expected at a December 2025 meeting.
The exercise of these options remains contingent on EBRD’s internal assessments and approvals, including regulatory compliance such as Foreign Investment Review Board clearance. If exercised, EBRD would gain customary minority rights and the ability to appoint a director to PhosCo’s board, potentially deepening its involvement in the project’s development.
Strategic Alignment with Tunisia and Community Engagement
The funding package aligns with broader efforts to develop Tunisia’s Northern Phosphate Basin, where PhosCo, EBRD, and the Tunisian government have collaborated under a Memorandum of Understanding since November 2024. The Gasaat project is designed to include meaningful local community participation, with plans for 10% project ownership by local stakeholders, reflecting a socially responsible approach to resource development.
PhosCo is also advancing studies on infrastructure, water, transport, and downstream processing options, aiming to position Gasaat as a globally competitive fertiliser supplier. The company is exploring opportunities to scale production beyond the initial 1.5 million tonnes per annum target to meet market demand.
Looking Ahead
With the EBRD grant and insider investment providing fresh momentum, PhosCo is well-positioned to update its scoping study and progress towards the BFS. The next phases will be critical in validating the project’s economics and securing further funding, potentially from EBRD itself, to bring Gasaat closer to production.
Bottom Line?
PhosCo’s latest funding boost sets the stage for a pivotal phase in the Gasaat project’s journey to becoming a major phosphate supplier.
Questions in the middle?
- Will EBRD exercise all 150 million options and fully fund the BFS?
- How will the KM discovery reshape the project’s cost structure and production profile?
- What impact will local community participation have on project timelines and social license?