DeSoto Resources (ASX:DES) has executed a binding heads of agreement with Canada-listed Fortuna Mining to establish an exploration alliance and joint venture across an area of interest in Guinea's Siguiri Basin, according to a Wednesday Australian bourse filing.

The agreement establishes an alliance to apply for, acquire, and explore new permits over a prescribed area of interest (AOI) in Guinea's Siguiri Basin, and once the target permits have been acquired, Fortuna will spend up to $12.5 million over three years to progress exploration in a set-equity joint venture, of which 30% will be owned by DeSoTo.

The joint venture does not include DeSoto's existing tenements, including tenements under application, or preclude DeSoto from acquiring other projects in the Siguiri Basin outside of the AOI, with the alliance delivering exposure to new opportunities for DeSoto, while not being responsible for funding exploration in the initial years, the filing added.

The company added that it has already made joint representations with Fortuna to the Guinea Government, with company representatives meeting key ministers and advisors in late August.

The company's shares rose 6% in recent Wednesday trade.