What's Happening?
DeSoto Resources has entered into a joint exploration agreement with Fortuna Mining in the Singuiri Basin, Guinea. The partnership involves creating a joint venture company and a Guinean subsidiary to manage exploration activities. Fortuna will invest up to $12.5 million over three years for a 70% stake, while DeSoto retains 30%. The agreement excludes DeSoto's wholly owned tenements but allows for project acquisitions outside the designated area. This strategic move aims to expand DeSoto's presence in Guinea, leveraging Fortuna's financial backing and technical expertise.
Why It's Important?
This alliance represents a significant step for DeSoto Resources in expanding its exploration footprint in West Africa, a region known for its rich mineral resources. The partnership with Fortuna Mining provides DeSoto with financial support and access to a broader range of exploration opportunities. For Fortuna, the agreement aligns with its strategy to grow its presence in the Birimian terrain, enhancing its long-term growth prospects. The collaboration could lead to significant mineral discoveries, benefiting both companies and contributing to Guinea's economic development.
What's Next?
The joint venture will focus on field activities and initial permit applications in the Singuiri Basin. As exploration progresses, both companies may seek to expand their operations and explore additional opportunities in the region. The success of this partnership could attract further investment and interest in Guinea's mining sector.
