Fortuna expands West African presence, forms exploration alliance in Guinea with DeSoto Resources

Executive Summary

• Fortuna Mining Corp. has entered into a binding Heads of Agreement with DeSoto Resources Limited to create an exploration alliance and joint‑venture company focused on the Siguiri Basin in Guinea.
• The JV will allocate 70 % ownership to Fortuna and 30 % to DeSoto, with Fortuna funding all exploration until either three years elapse or US$12.5 million is spent on “Go Projects.”
• The agreement establishes a 36‑month project generation phase aimed at identifying significant gold discoveries that could become future development projects.

Key Details

• Parties: Fortuna Mining Corp. (NYSE: FSM | TSX: FVI) and DeSoto Resources Limited (Australian‑listed).
• Scope: Exploration alliance covering identified target areas within the Siguiri Basin, Guinea – a region noted for multi‑million‑ounce gold potential.
• Structure of JVCo: Board of up to four directors (two from each party); majority partner holds a casting vote.
• Project Generation Phase: 36 months dedicated to locating “Go Projects” (discoveries warranting further development).
• Joint Venture Phase Trigger: Upon agreement of a Go Project, the joint‑venture converts with Fortuna holding 70 % and DeSoto 30 %.
• Funding Commitment: Fortuna will solely fund exploration until the later of:
• Three years from JVCo formation, or
• Cumulative US$12.5 million in exploration expenditures on Go Projects.
• Strategic Rationale (Quote): “Guinea’s Siguiri Basin has demonstrated potential to host multi‑million‑ounce gold deposits… this agreement provides Fortuna with an excellent entry into this highly prospective region.” – Paul Weedon, SVP Exploration, Fortuna.

Notable Quotes

“Guinea’s Siguiri Basin has demonstrated potential to host multi‑million‑ounce gold deposits in a country with a long mining history. This agreement with DeSoto provides Fortuna with an excellent entry into this highly prospective region, alongside a highly qualified and experienced team with a proven track record of discovery across West Africa.” – Paul Weedon, Senior Vice President of Exploration, Fortuna Mining Corp.