PhosCo brings Tunisian engineering heavyweight into Gasaat development

STUDI joins Gasaat’s feasibility pathway

PhosCo Ltd (ASX:PHO) has brought a substantial Tunisian engineering group into the next stage of its Gasaat phosphate project, signing a non-binding memorandum of understanding with STUDI International. The proposed relationship covers the pre-feasibility and bankable feasibility studies, with the potential to continue through detailed engineering, procurement, construction support and commissioning.

STUDI is intended to become PhosCo’s preferred engineering and advisory partner across infrastructure, transport, ports, construction, water, energy, environmental work, financial advisory and project management. That local connection matters for a project whose development would depend on more than mining studies alone. The MOU establishes a framework, however, rather than awarding STUDI any guaranteed work: PhosCo retains discretion over appointments and may use specialist consultants or other firms.

The announcement lands as PhosCo moves towards its October scoping study target, which the company says remains on track for release later this month. The updated study is expected to provide the next substantive read on how recent exploration and processing work feeds into the project’s development case.

$1.4 million placement remains conditional

Alongside the MOU, STUDI has agreed, subject to final legal documentation, to subscribe for 9,523,810 PhosCo shares at $0.15 each. The proposed placement would raise $1.4 million before costs, with the proceeds allocated to Gasaat exploration and studies, permitting and general working capital.

STUDI would also receive 9,523,810 attaching options, one for each share subscribed. The options would be exercisable at $0.20 and expire on 29 June 2029. PhosCo says both the shares and options are intended to be issued under its existing ASX Listing Rule 7.1 placement capacity, while the documentation is expected to be finalised within 30 days.

Local infrastructure capability meets project execution risk

STUDI has operated since 1970, employs about 700 people and has delivered projects in more than 40 African countries. Its stated credentials include more than 180 port projects, 2,400 road and highway projects, water infrastructure serving more than 160 million people, and experience working with development finance institutions including the World Bank and African Development Bank.

That experience gives the partnership a credible infrastructure dimension, particularly across the power, water, transport and port requirements identified for Gasaat. But the filing is careful about what has actually been secured: the MOU lasts 24 months, can be terminated on 90 days’ notice, and does not require PhosCo to engage STUDI or guarantee that definitive service agreements will be signed.

For shareholders, the proposed investment is therefore both a funding event and a test of follow-through. The immediate checkpoints are completion of the placement documentation, release of the updated scoping study and evidence that the STUDI relationship progresses from strategic framework to priced, definitive work packages.