Fortuna enters Guinea with DeSoto exploration deal

Executive Summary

• Fortuna Mining Corp. entered a binding heads‑of‑agreement with DeSoto Resources Ltd. to form an exploration alliance and joint venture in Guinea’s Siguiri basin.
• The partnership will create a new JV company, initially focused on a 36‑month “project generation” phase to identify go‑projects, after which Fortuna will hold 70 % and DeSoto 30 % of the JV.
• Fortuna will finance all exploration until either three years have elapsed or cumulative spend reaches US$12.5 million on go‑projects.

Key Details

• Agreement Type: Binding heads of agreement (HOA) establishing an exploration alliance and future joint venture in Guinea’s Siguiri basin.
• Parties: Fortuna Mining Corp. (Canada) and DeSoto Resources Ltd. (Australia).
• JV Structure: New joint‑venture company (JVCo) with a board of up to four directors – two appointed by each party; the majority partner receives a casting vote.
• Project Generation Phase: 36 months dedicated to acquiring permits and identifying “go” projects (significant discoveries warranting development).
• Transition to Joint Venture: Upon agreement of a go‑project, JVCo converts to a formal joint venture with Fortuna holding 70 % equity and DeSoto 30 %.
• Financing Commitment: Fortuna will solely fund exploration activities until the later of (i) three years from the HOA execution or (ii) US$12.5 million cumulative expenditure across go‑projects.
• Strategic Rationale: Provides Fortuna entry into a highly prospective West African gold region, leveraging DeSoto’s local expertise and track record in West Africa.

Notable Quotes

“Guinea's Siguiri basin has demonstrated potential to host multimillion‑ounce gold deposits… this agreement with DeSoto provides Fortuna with an excellent entry into this highly prospective region.” – Paul Weedon, Senior Vice‑President of Exploration, Fortuna Mining Corp.