Canadian precious metals producer Fortuna Mining Corp. has agreed to acquire the 190-square-kilometer Bambadji gold exploration project in Senegal from Barrick Mining Corp. and IAMGOLD Corp. for $200 million.

The acquisition gives Fortuna control of a large exploration area next to its feasibility-stage Diamba Sud Gold Project, bringing about 60 kilometers of prospective ground along the Senegal-Mali Shear Zone under one operator.

The geological corridor hosts several major gold mines in West Africa. Fortuna said Bambadji also provides access to an extensive historical exploration database, including about 214,000 meters of auger, reverse circulation and diamond drilling.

“Bambadji represents a rare opportunity to consolidate a large-scale, highly prospective exploration land package immediately adjacent to our feasibility-stage Diamba Sud Gold Project,” Fortuna President and CEO Jorge A. Ganoza said.

He said the $200 million consideration reflects the size of the property, existing drill targets and historical exploration work, as well as the potential to expand Diamba Sud.

Bambadji extends Diamba Sud

Bambadji comprises two properties covering about 190 square kilometers along the eastern boundary of Diamba Sud. Existing secondary roads connect the area to Fortuna’s project, which could support exploration and future development activities.

Diamba Sud has mineral reserves containing 1.15 million ounces of gold, with Fortuna expecting a final investment decision soon.

The proximity of Bambadji means Fortuna can investigate additional gold targets close to the proposed Diamba Sud processing plant. The company has identified eight priority targets for its initial drilling campaign.

$8 million drilling program

Fortuna has approved an $8 million exploration budget for Bambadji through the end of 2026, including 51,000 meters of reverse circulation and diamond drilling. Work is expected to start in the third quarter.

Historical exploration has identified at least eight drill-defined prospects, along with several mineralized trends that remain open along strike and at depth.

The project has also recorded several types of gold mineralization, including breccia-style mineralization similar to that at Diamba Sud, Yalea sericite-albitite mineralization and the high-tourmaline Gara style.

Much of the historical drilling was shallow and widely spaced, leaving several gaps of several kilometers along anomalous gold trends. Fortuna plans to use its drilling program to test those areas and improve its understanding of the deposits.

Barrick, IAMGOLD receive cash

Under agreements signed Aug. 10, Fortuna paid $200 million in cash from its treasury. A Barrick subsidiary received $130.35 million, while an IAMGOLD subsidiary received $69.65 million.

Fortuna also granted the sellers a combined 0.5% net smelter return royalty on the first 1.75 million ounces of gold produced from the Bambadji Nord property. Barrick’s subsidiary will receive 0.325%, while IAMGOLD’s subsidiary will receive 0.175%. TD Securities acted as Fortuna’s sole financial adviser on the transaction.

Historical data to be reviewed

The Bambadji exploration database dates to 1993 and includes work by IAMGOLD, Anmercosa Exploration, Ashanti Goldfields and Barrick, formerly Randgold. Most drilling was conducted by Barrick after 2007.

Fortuna said historical exploration generally followed industry standards at the time, although some procedures and records cannot be independently verified.

The company plans additional validation work, including possible reassaying of historical samples and drilling of twin holes to confirm selected results.

Paul Weedon, Fortuna’s senior vice president of exploration and a member of the Australian Institute of Geoscientists, reviewed and approved the technical information.

Fortuna is a Canadian precious metals producer with three operating mines and exploration projects in Argentina, Côte d’Ivoire, Guinea, Guyana and Peru, as well as the Diamba Sud project in Senegal.

The acquisition strengthens Fortuna’s position in Senegal as it advances Diamba Sud toward a final investment decision while giving the company additional ground to test for gold resources.