DeSoto Raises A$14M at A$0.16 to Advance 10,000m Guinea Drill Program
DeSoto Resources has raised A$14 million in a strongly supported placement to fund its maiden drilling program in Guinea’s prolific Siguiri Basin, backed by a notable cornerstone investor and institutional interest.
- A$14 million placement at A$0.16 per share
- Cornerstone A$5 million investment from Tony Poli
- Funds to support 10,000-meter drilling across multiple Guinea projects
- Strong institutional and resource fund participation
- Second tranche and director shares subject to shareholder approval
Strategic Capital Raise Amid Maiden Drilling
DeSoto Resources Limited (ASX, DES) has successfully secured firm commitments for a A$14 million placement to underpin its initial drilling campaign in Guinea’s Siguiri Basin, a region renowned for its gold potential. The placement, priced at A$0.16 per share, arrives just as DeSoto embarks on a 10,000-meter reverse circulation drilling program targeting promising prospects including Dadjan, Tole, and Timbakouna.
The capital raise is a clear vote of confidence from the market, anchored by a significant A$5 million cornerstone investment from Tony Poli, a respected resource investor with a proven track record, notably as an early backer of Predictive Discovery. Poli’s involvement signals strong belief in DeSoto’s technical team and their systematic approach to exploration, which mirrors the successful strategy behind the discovery of the tier-1 Bankan Gold Project in the same basin.
Institutional Backing and Placement Structure
Alongside Poli’s commitment, the placement attracted robust support from new and existing institutional investors and resource funds, underscoring the sector’s appetite for exposure to Guinea’s gold exploration story. Canaccord Genuity and Euroz Hartleys acted as joint lead managers, further demonstrating confidence by accepting half their fees in shares rather than cash.
The placement is structured in two tranches, the first tranche, comprising approximately 46.7 million shares, will be issued under existing placement capacity, while the second tranche, involving around 40.8 million shares plus shares issued to joint lead managers and directors, awaits shareholder approval at the upcoming AGM scheduled for 20 November 2025.
Funding Exploration and Corporate Growth
Proceeds from the placement will primarily fund the ongoing drilling program, which aims to test high-potential targets identified through earlier soil sampling and auger drilling. Beyond drilling, funds will support further trenching and soil sampling, early-stage exploration across a broader portfolio of tenements in Guinea, and preparatory work for the Fortuna joint venture, including permit applications and field mobilization.
Additionally, the capital will bolster DeSoto’s Northern Territory exploration activities and provide working capital for corporate operations. This comprehensive funding approach positions DeSoto to advance multiple fronts simultaneously, maintaining momentum in a competitive exploration landscape.
Experienced Team Driving Growth
DeSoto’s leadership team brings deep expertise in West African gold exploration, with key figures credited for major discoveries in the region. This experience, combined with a disciplined exploration methodology, underpins investor confidence and the company’s strategic direction.
As drilling progresses, market participants will be watching closely for assay results that could validate the promising early-stage targets and potentially unlock significant value for shareholders.
Bottom Line?
DeSoto’s well-backed capital raise sets the stage for a pivotal drilling campaign that could reshape its growth trajectory in Guinea’s gold-rich Siguiri Basin.
Questions in the middle?
- What initial assay results will the maiden drilling program deliver?
- Will shareholders approve the second tranche and director participation at the AGM?
- How will DeSoto balance exploration across its expanding Guinea and Northern Territory portfolios?
