By: Creamer media

The Gasaat project is double the size of the original Chaketma project, which is located within Gasaat, and is fully owned by PhosCo.

Gasaat hosts a Join Ore Reserve Committee-compliant resource of 146.4-million tonnes at 20.6% phosphorus pentoxide.

The mineralisation is open and numerous drilling targets have been identified.

PhosCo has launched a fully underwritten A$5-million entitlement offer, with PhosCo directors and major shareholder ASX-listed Lion Selection Group committing to priority sub-underwriting commitments of $3.25-million.

Lion Selection Group and PhosCo MD Taz Aldaoud has also agreed to advance a loan to PhosCo for $1.5-million to fast-track work on Gasaat and Sekarna.

PhosCo has concurrently announced the signing of a mandate letter with the European Bank for Reconstruction and Development (EBRD) for a potential $5-million strategic investment. These funds will contribute towards a bankable feasibility study (BFS) on the project.

A major drilling programme is set to start immediately, including extensional drilling at Gasaat and scout drilling at the Sekarna prospect.

Drilling is expected to grow PhosCo’s total inventory and forecast production rate ahead of a BFS.

Phosphate expert Sam Lancuba has been appointed to the PhosCo board, bringing 45 years of global fertiliser industry experience.

“Securing formal ownership of the Gasaat phosphate project is a pivotal event in PhosCo's journey to becoming a global fertiliser producer,” Aldaoud says.

He highlights growing global demand for critical fertilisers such as phosphate.

“With the project now officially granted, Gasaat has a clear pathway to production and cash flow, ensuring it is well-positioned to capitalise on this opportunity.”