DeSoto Resources Limited (ASX: DES) has taken its first major step under its Guinea exploration alliance with Fortuna Mining Corp. (TSX: FVI), signing a heads of agreement to acquire seven gold projects in the Siguiri Basin. The package, covering 591.43km², is held through the joint venture vehicle High Guinea Gold. This transaction marks the inaugural project acquisition for the partnership, which was formed to identify and develop large-scale gold prospects within West Africa.

The acquisition is structured as a staged, risk-managed process. The total consideration is US$604,682, with payments tied to specific milestones including tenure registration and the finalization of exploration phases. The alliance itself features an ownership split of 70% for Fortuna and 30% for DeSoto, with Fortuna sole-funding exploration up to a specified expenditure cap or a three-year term.

"When DeSoto entered into the alliance with Fortuna, the objective was to combine DeSoto's in-country capability, technical team and project generation experience with Fortuna's West African operating experience and exploration funding capacity." — Chris Swallow, Managing Director

The current agreement initiates a mandatory three-month due diligence period. During this window, the team will focus on verifying the status and legal boundaries of each project within the local mining cadastre, alongside a comprehensive compilation of available geological data. This foundational work is essential before the projects can be officially designated as “Go Projects” under the joint venture governance process.

Following successful due diligence, the venture intends to begin systematic field activities. This will include regional structural interpretation, mapping, and geochemical sampling to rank targets. These efforts are designed to integrate the new ground into a broader Siguiri Basin JV exploration pipeline, allowing the partners to advance the most prospective areas toward formal field evaluation and future drilling programs.

Read the full announcement: DeSoto-Fortuna Guinea Alliance Secures First Ground Package