Canadian mining giant spends $200 million to acquire major Senegal gold project as West Africa’s mining race heats up

The acquisition gives Fortuna control of two properties covering about 190 square kilometres and extending across roughly 60 kilometres of prospective ground along the Senegal-Mali Shear Zone, a major gold corridor that hosts several large-scale mines.

Bambadji is located next to Fortuna’s Diamba Sud Gold Project, which is at the feasibility stage and hosts mineral reserves containing about 1.15 million ounces of gold. Fortuna expects to make a final investment decision on Diamba Sud shortly.

The company said the Bambadji acquisition could provide additional exploration opportunities and potentially expand the Diamba Sud operation.

“The US$200 million consideration paid for the project reflects multiple prime drill-defined targets, the scale of the land package, the extensive historical exploration dataset, and the potential to materially expand Diamba Sud,” Fortuna President and CEO Jorge A. Ganoza said.

Fortuna has approved an initial $8 million exploration budget for Bambadji for the remainder of 2026.

The programme includes about 51,000 metres of reverse-circulation and diamond drilling, with work expected to begin in the third quarter. The company plans to focus on several advanced drill-defined targets within a 20-kilometre radius of the proposed Diamba Sud processing plant.

Fortuna paid the full $200 million consideration in cash from its treasury, with $130.35 million going to a Barrick subsidiary and $69.65 million to an IAMGOLD subsidiary.

The sellers will also retain a 0.5% net smelter return royalty on the first 1.75 million ounces of gold produced from the Bambadji Nord property.

The acquisition strengthens Fortuna’s position in Senegal as the company reshapes its West African portfolio.

Diamba Sud is expected to produce an average of 158,000 ounces of gold annually during its first four years, before averaging 116,000 ounces over its estimated 9.4-year mine life.

The Bambadji project could give Fortuna additional resources around the planned operation and access to a large exploration area connected to the same geological corridor.

The Senegal deal also comes after Fortuna reduced its exposure to Burkina Faso, where rising security risks and regulatory uncertainty have complicated mining operations.

Fortuna sold its Yaramoko gold mine in Burkina Faso to a private local company for $130 million. The sale reduced the company’s annual gold production by about 70,000 ounces, but Ganoza said the offer was attractive given the mine’s declining reserves and increasing operating risks.

Across the wider region, mining companies are facing a changing regulatory environment. Burkina Faso, Mali and Niger have all experienced military coups since 2020 and have moved to increase state participation in their mining sectors.

In Mali, tensions between authorities and foreign miners have included the detention of executives and the seizure of gold inventories. Barrick, for instance, halted operations after Malian authorities confiscated about three tonnes of gold worth roughly $245 million.