ASX-listed PhosCo has reported that the US government has awarded a $1.5-million grant to global investment and advisory group CrossBoundary Group, which will assist PhosCo with securing US investment, commercial partnerships and technical expertise for PhosCo’s Gasaat phosphate project, in Tunisia.

In a media release, PhosCo says this process will aim to attract investment of up to $100-million.

PhosCo explains that the US Department of State, through the Bureau of Near Eastern Affairs (NEA) and the US Embassy in Tunis, has concluded the 'Safeguarding U.S. Critical Minerals Supply Chains – Tunisia' notice of funding opportunity (NOFO), first announced by PhosCo on August 10 and has selected CrossBoundary to lead the programme.

The company explains that the programme will connect US investors and companies with PhosCo’s Gasaat project. Over the next two years, the company says it aims to mobilise private investment into PhosCo, contributing to the expansion of Tunisia’s phosphate production and global supply chain, supporting job creation and regional development.

“The award of this grant is extremely valuable to PhosCo. Not only does it provide substantial funding to help secure critical investment, commercial partners and engineering advice, it also reflects the vital role our Gasaat project stands to play in the supply of essential fertiliser,” says PhosCo MD Taz Aldaoud.

He says CrossBoundary brings a global investor network, deep transaction experience in emerging markets and a proven track record alongside the US International Development Finance Corporation (DFC) on critical minerals projects.

PhosCo explains that CrossBoundary has a strong record with the DFC including supporting the origination and due diligence of multiple DFC critical minerals transactions across Africa.

Gasaat forms part of PhosCo’s vision for an integrated phosphate hub in north-western Tunisia, with the potential to contribute to the development of Tunisia’s phosphate industry, create employment and support regional economic and social development.

The company says the grant was announced by the US government on its official channels and concludes the NOFO process announced on August 10.

PhosCo says it will have access to a consortium of engineering, phosphate processing and Tunisian legal expertise assembled by CrossBoundary, complementing the work already undertaken by the company and its existing technical partners.

“We look forward to working closely with CrossBoundary and its consortium partners to engage potential investors and commercial partners, building on the work already undertaken by PhosCo and our existing technical partners,” says Aldaoud.

He says the programme comes at an important time for Gasaat as PhosCo continues to advance the project and deepen its engagement with strategic and financial partners.

Aldaoud says a dedicated US government-backed investor engagement process, combined with complementary engineering and commercial expertise, has the potential to open new pathways to capital and offtake as we progress towards the next stages of development.

The company explains that the programme is structured around three concurrent lines of effort set out in the NOFO. This includes private capital mobilisation, supply chain agreements and commercial frameworks and downstream by-product assessment.

PhosCo says these activities are intended to build on its existing work and complement the expertise of its established technical partners. The programme will also address the environmental, social and governance requirements that are important to international investors and development finance institutions.

The programme complements the progress outlined in PhosCo’s latest quarterly activities report, including ongoing technical and exploration work, metallurgical advances and engagement with potential strategic partners and international financial institutions.

PhosCo explains that the award has been made by the US Department of State to CrossBoundary and that PhosCo is not a party to the award and will not receive funds under it.

The company says its role is as the counterparty asset for the US investment and commercial engagement facilitated by the programme. The US government will be substantially involved in delivery of the programme, including approving the selection of investors and commercial participants.

PhosCo says the programme does not constitute a commitment by any party to invest in, finance or buy product from PhosCo. No investment, financing or offtake agreements have been entered into as a result of the programme and there is no guarantee that the programme will result in any such agreements.

The company explains that any transaction would be subject to due diligence, negotiation and the approvals of the relevant parties. The company says it will keep the market informed in accordance with its continuous disclosure obligations.

PhosCo says it considers the programme highly complementary to its existing strategy and will continue to advance its own engagement with potential investors and strategic partners independently, without any material diversion of the company’s existing resources.

Moving forward, PhosCo says it will work with CrossBoundary, its consortium partners and the US government as the programme begins, including engagement with potential investors and commercial partners and further assessment of the financing, technical and commercial opportunities available to Gasaat.

In parallel, the company will continue advancing its technical studies, exploration and project development activities with its existing partners as it progresses towards the next stages of the project.

“On behalf of the board, I thank the Tunisian government and relevant authorities for their continued trust in PhosCo to develop this important project, and the US Department of State’s Bureau of Near Eastern Affairs and the US Embassy in Tunis for their support.

“Gasaat has the potential to contribute to the growth of Tunisia’s phosphate industry, create employment and support economic and social development in the surrounding region,” says Aldaoud.