PhosCo’s $5M Placement Boosts Cash to $7.3M Ahead of Resource Update

PhosCo Strengthens Financial Position

PhosCo Ltd (ASX, PHO) has successfully secured $5 million through a single tranche placement priced at $0.12 per share, reflecting robust investor confidence in the company’s Gasaat Phosphate Project in Tunisia. The placement attracted strong demand from both new institutional investors and existing shareholders, underscoring the market’s growing appetite for phosphate fertilisers sourced from politically stable regions.

Capital to Accelerate Development

With the placement proceeds combined with existing cash and grant funding, PhosCo’s pro forma cash position stands at approximately $7.3 million. These funds are earmarked to advance ongoing exploration and development activities, including metallurgical testing and critical studies that will underpin the project’s next phases. The company is poised to transition smoothly from an updated scoping study into a bankable feasibility study, a key step towards project financing and eventual production.

Upcoming Milestones to Watch

Investors can anticipate several important updates in the near term. PhosCo plans to release a maiden mineral resource estimate for the KM and SAB deposits, which are notable for their high-grade, shallow mineralisation and proximity to the proposed processing plant. This resource update is expected to enhance the upcoming scoping study, providing a clearer picture of the project’s economic potential. Metallurgical test results and the commencement of the bankable feasibility study will further define the pathway to development.

Market Context and Strategic Positioning

The global fertiliser market is experiencing increased demand for phosphate products, driven by agricultural needs and supply chain considerations. PhosCo’s Gasaat Project benefits from its location in Tunisia, a reliable jurisdiction, which adds to its appeal amid geopolitical uncertainties affecting other phosphate sources. The company’s ability to attract quality institutional investors at this stage signals confidence in both the asset and management’s strategy.

Looking Ahead

Managing Director Taz Aldaoud expressed optimism about the company’s trajectory, highlighting the consistent drilling results and the strategic importance of the KM and SAB deposits. The successful placement not only strengthens PhosCo’s balance sheet but also sets the stage for delivering value-adding milestones that could reshape the company’s market position.