Highlights

  • EBRD grants EUR 1M (AUD 1.8M) to advance PhosCo’s Gasaat Phosphate Project in Tunisia.
  • Managing Director invests USD 1.1M through early exercise of 21.4M options at 5 cents.
  • Combined funds to support project optimisation and incorporation of the KM discovery ahead of BFS.

PhosCo Ltd (ASX:PHO) announced that the European Bank for Reconstruction and Development (EBRD) has awarded a EUR 1M (AUD 1.8M) grant to its subsidiary, Himilco Pty Ltd, to accelerate work on its wholly owned Gasaat Phosphate Project in Tunisia.

The grant will co-finance technical activities aimed at optimising the Gasaat Project and advancing it toward a bankable feasibility study (BFS). This includes prioritising low-strip deposits to enhance early-life project economics. PhosCo will manage the work program while EBRD will disburse the grant to Himilco as partial reimbursement for project expenses.

In parallel, Managing Director Taz Aldaoud has agreed to invest USD 1.1M through the exercise of 21.4M options at 5 cents each. Aldaoud’s investment follows his acquisition of options from Lion Selection Group Ltd and Lion Manager Pty Ltd.

Incorporating the KM Discovery

The combined funds will be used to accelerate high-priority initiatives, including incorporating the KM discovery into the Gasaat Resource and updating the Scoping Study. The KM discovery has yielded consistently thick, higher-grade intersections and, given its lower strip ratio and proximity to the proposed plant site, is expected to positively influence project economics.

Taz Aldaoud stated:

“This is a major development for PhosCo and Gasaat. EBRD’s decision to grant us this money is a strong vote of confidence in the project and its potential to make a significant contribution to Tunisia.

“EBRD’s generous grant, along with my investment of USD 1.1M via exercise of options, will be used to incorporate the outstanding KM discovery into Gasaat’s already-significant JORC Resource of 146.4 Mt at 20.6% P₂O₅, underpinning a cost competitive, long-life project.

“In addition, the proposed issue of 150 M options to EBRD formalises our March 2025 Mandate Letter arrangement, providing a road map for funding of AUD 7.5M towards the Gasaat BFS assuming the Updated Gasaat Scoping Study delivers as anticipated and EBRD elects to exercise its options.”

Option Issue to EBRD

PhosCo will issue 150 million options to EBRD, exercisable at AUD 0.05 per share. Sixty million will be issued under the company’s existing placement capacity, while 90 million will be subject to shareholder approval at a meeting expected around 17 December 2025.

The options expire on the earlier of 120 days from the release of the updated Scoping Study or 31 January 2028. If fully exercised, the investment would total AUD 7.5M, contributing significantly toward the BFS.

Advancing the Gasaat Project

The Gasaat Project hosts a 146.4 Mt @ 20.6% P₂O₅ Resource and is located within Tunisia’s Northern Phosphate Basin. PhosCo has recommenced fieldwork focusing on KM and SAB prospects, with an updated Scoping Study planned before launching the BFS.

The project remains aligned with Tunisia’s social and economic development agenda, with local communities holding a 10% project participation interest.

Share Performance

PHO’s shares trading at AUD 0.095 per share on 30 October 2025, up 11.76% from its previous close of AUD 0.085.