What is the story about?
What's Happening?
DeSoto Resources has entered into a binding agreement with Fortuna Mining to form a joint venture for gold exploration in Guinea's Singuiri Basin. The partnership involves creating an Australian joint venture company and a Guinean subsidiary. Fortuna will invest up to $12.5 million over three years for a 70% stake, while DeSoto retains 30%. This strategic alliance aims to leverage both companies' expertise to explore the highly prospective region, with DeSoto's Managing Director highlighting the potential for substantial shareholder value.
Why It's Important?
This joint venture represents a significant strategic move for both DeSoto and Fortuna, as it allows them to expand their exploration activities in one of West Africa's premier gold provinces. The partnership provides DeSoto with financial backing and technical expertise, while Fortuna gains access to a promising exploration area. The agreement underscores the growing interest in West Africa's mineral resources and could lead to significant discoveries, impacting the global gold market and benefiting both companies' stakeholders.
What's Next?
The joint venture will focus on establishing a technical committee and securing initial permits to commence field activities. As exploration progresses, the companies will assess the potential for further investment and development. The success of this venture could attract additional interest and investment in the region, potentially leading to further exploration and development projects.
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