Australian Company Partners with Tunisian Engineering Firm to Advance Phosphate Rock Feasibility Study, Plans A$1.4 Million Investment

en.Wedoany.com Reported - On October 7, Australian mining company PhosCo signed a non-binding memorandum of understanding with Tunisian engineering consultancy STUDI International, under which the two parties intend to jointly advance the development of the Gasaat phosphate rock project in Tunisia, accompanied by a proposed strategic equity investment of A$1.4 million. Under the agreement, STUDI has been designated as the preferred engineering partner for the project's pre-feasibility study and bankable feasibility study, and the two parties will also evaluate opportunities for cooperation in subsequent detailed design, procurement, construction support, and commissioning phases.

The memorandum of understanding signed by both parties has a term of 24 months and may be extended by mutual agreement. PhosCo retains the right to decide whether to formally engage STUDI to undertake specific engineering work, and may also separately engage specialized mining consultancy firms. The work STUDI is intended to undertake initially covers the pre-feasibility study, bankable feasibility study, and engineering consulting, while subsequent design, procurement, and construction support will still require specific engagement arrangements to be determined based on project progress.

Under the proposed equity investment terms, STUDI plans to subscribe for approximately 9.52 million ordinary shares of PhosCo at A$0.15 per share, and to receive an equal number of attached warrants. The warrant exercise price is A$0.20 per share, valid until June 29, 2029. The proceeds are intended to be used for continued exploration of the Gasaat project, research work, permitting, and general working capital needs. This investment remains a proposed arrangement and does not constitute a completed financial close.

PhosCo holds a 100% interest in the Gasaat project, located in the Kasserine region of west-central Tunisia. The company previously announced a mineral resource of 146.4 million tonnes with an average P2O5 grade of 20.6%. A preliminary economic assessment completed in 2022 proposed a development plan with annual production of approximately 1.5 million tonnes of phosphate rock concentrate and a mine life of 46 years. The company is updating the project's technical and economic parameters based on subsequent exploration and beneficiation test results.

In August 2026, PhosCo achieved phosphate rock concentrate grades of 31.4% to 34% P2O5 in beneficiation tests conducted in Adelaide, Australia, with corresponding metal recoveries ranging from 73.5% to 77.8%. The tests employed a single-stage rougher–cleaner flotation process. On October 5, the company also announced new drilling results from the Sekarna North and DOH exploration areas, among which the first two drill holes at Sekarna North intersected phosphate mineralized zones of 6 meters and 7.4 meters in thickness, respectively, with sample assay results still pending.

PhosCo plans to release an updated preliminary economic assessment for Gasaat in October 2026, incorporating new resource exploration and metallurgical test results. The company will continue to carry out pre-feasibility study preparation, mining permit work, and financing arrangements. The specific engineering contract scope, service fees, and implementation timeline for STUDI remain to be determined through a formal agreement.