PhosCo (ASX:PHO) signed a memorandum of understanding with Tunisian engineering firm STUDI International to establish a long-term strategic partnership for the development of PhosCo's Gasaat phosphate project in Tunisia, according to a Wednesday Australian bourse filing.

STUDI agreed to subscribe for around 9.5 million fully paid ordinary shares in PhosCo at AU$0.15 per share, raising AU$1.4 million before costs, and it will also receive one attaching option for every share subscribed, exercisable at AU$0.20 and expiring on June 29, 2029.

The investment is subject to the finalization of legal documentation, which is expected to be concluded within the next 30 days.

STUDI is planned to be the firm's preferred engineering and advisory partner across infrastructure, transport, ports, construction, industry, water, energy, environment, planning, financial advisory, GIS, and project management.