What's Happening?
Fortuna Mining, a Canadian precious metals company, has entered into a binding heads of agreement with DeSoto Resources, an Australia-listed company, to form an exploration alliance in Guinea's Siguiri basin. This agreement marks Fortuna's strategic entry into Guinea, a region known for its potential to host significant gold deposits. The partnership will establish a joint venture company (JVCo) with equal board representation, focusing on acquiring permits and identifying potential projects over a 36-month period. Once a viable project is identified, Fortuna will hold a 70% stake in the joint venture, with DeSoto holding 30%. Fortuna will fund exploration efforts up to $12.5 million or for three years, whichever is longer.
Why It's Important?
This alliance is significant as it positions Fortuna Mining to expand its footprint in West Africa, a region with a rich mining history and potential for large-scale gold discoveries. The collaboration with DeSoto Resources, which has a proven track record in West Africa, enhances Fortuna's exploration capabilities. The move could lead to substantial economic benefits for both companies and potentially boost local economies through job creation and infrastructure development. For the mining industry, this partnership underscores the ongoing interest and investment in West Africa's mineral resources.
What's Next?
The joint venture will focus on identifying and developing 'go projects' in the Siguiri basin. As exploration progresses, the companies will work towards transitioning these projects into formal joint ventures. The success of this alliance could attract further investment into Guinea's mining sector, potentially leading to more partnerships and exploration activities in the region.
