Fortuna Mining Strikes Gold Exploration Deal in Guinea's Siguiri Basin With DeSoto Resources
Benzinga Newsdesk 1 year ago
News
Fortuna Mining Corp. ((NYSE:FSM, TSX:FVI), (NYSE:FSM, TSX:FVI) is pleased to announce it has executed a binding Heads of Agreement (HOA) with DeSoto Resources Limited, an Australian-listed gold exploration company, to
Fortuna Mining Corp. ((NYSE:FSM, TSX:FVI), (NYSE:FSM, TSX:FVI) is pleased to announce it has executed a binding Heads of Agreement (HOA) with DeSoto Resources Limited, an Australian-listed gold exploration company, to establish an exploration alliance and joint venture across the highly prospective Siguiri Basin in Guinea.
New Exploration Front
Paul Weedon, Senior Vice President of Exploration at Fortuna, commented, "Guinea's Siguiri Basin has demonstrated potential to host multi-million-ounce gold deposits in a country with a long mining history. This agreement with DeSoto provides Fortuna with an excellent entry into this highly prospective region, alongside a highly qualified and experienced team with a proven track record of discovery across West Africa."
Key Agreement Terms
- The binding HOA establishes an exploration alliance to apply for and acquire new permits in identified areas of interest.
- A new joint venture company (JVCo) will be formed, with a board of up to four directors, two from each party, with the majority partner holding a casting vote.
- Project Generation Phase: A 36-month period focused on identifying "Go Projects", meaning significant discoveries warranting further development.
- Joint Venture Phase: Once a Go Project is agreed upon, JVCo will transition into a formal joint venture in which Fortuna will hold 70 percent and DeSoto will hold
30 percent, and Fortuna will solely fund exploration until the later of:- three years; or
- US$12.5 million in cumulative expenditure across Go Projects.
