Fortuna Commits US$12.5M to Guinea JV with DeSoto for New Gold Permits

Strategic Alliance in West Africa’s Gold Heartland

DeSoto Resources Limited (ASX, DES) has taken a decisive step to expand its footprint in Guinea’s Siguiri Basin by entering into a binding Heads of Agreement with Canadian-listed Fortuna Mining Corp (TSX, FVI). This new exploration alliance aims to acquire and explore fresh mineral permits across a highly prospective area, with Fortuna committing up to US$12.5 million in exploration funding over the next three years.

The Siguiri Basin is widely regarded as one of the few remaining underexplored regions globally with the potential to host large-scale, open-pit gold deposits exceeding two million ounces. DeSoto’s established presence and technical expertise in Guinea, combined with Fortuna’s strong financial backing and operational experience in West Africa, create a compelling partnership poised to unlock significant value.

Joint Venture Structure and Governance

The alliance will be formalised through the incorporation of an Australian joint venture company (JVCo) and a wholly owned Guinean subsidiary. Fortuna will hold a 70% interest, with DeSoto retaining 30%. The JVCo board will be evenly split between the two parties, with the majority shareholder holding a casting vote to ensure decisive governance.

Importantly, the joint venture excludes DeSoto’s existing tenements and applications, allowing the company to continue pursuing other opportunities independently within the Siguiri Basin. This structure provides DeSoto shareholders with exposure to new exploration upside without the immediate burden of funding, as Fortuna will solely finance exploration during the initial three-year period or until US$12.5 million is spent.

Building on Complementary Strengths

DeSoto Managing Director Chris Swallow highlighted the strategic nature of the alliance, noting it offers a “solid platform to deliver discovery success” in one of West Africa’s premier gold provinces. Fortuna’s Senior Vice President of Exploration, Paul Weedon, echoed this sentiment, emphasising the opportunity to collaborate with a highly credentialed local team in an underexplored yet prospective terrain.

Fortuna’s African assets, including the Séguéla gold mine in Côte d’Ivoire and the advancing Diamba Sud project in Senegal, have become core contributors to its growth. This alliance represents a continuation of Fortuna’s strategy to expand its exploration footprint across the Birimian geological belt, which is renowned for hosting world-class gold deposits.

Next Steps and Market Implications

The immediate next steps involve the incorporation of the joint venture entities, lodgement of initial mineral permit applications, and establishment of a technical committee to oversee exploration activities. Both companies have already engaged with key government ministers and advisors in Guinea, signalling strong local support for the initiative.

For investors, this alliance offers a low-risk avenue for DeSoto to participate in potentially transformative exploration upside while leveraging Fortuna’s financial muscle. The success of this JV will hinge on permit approvals, exploration results, and the ability to identify and develop “Go Projects” within the designated area of interest.