Fortuna Silver Mines Inc

XAU Resources Inc. provided a corporate update on its proposed Quartzstone Gold Project acquisition, Fortuna Mining Corp.'s exploration program, and the Noseno Project. The TSX Venture Exchange has determined the transaction constitutes a reverse takeover and is conducting a comprehensive review, with trading in XAU shares halted pending completion. Fortuna is advancing a 2026 work program at Quartzstone with a budget of approximately US$5.6 million, including 5,000 meters of diamond drilling and a 1,600-sample auger geochemistry survey. XAU is finalizing an updated NI 43-101 technical report on Noseno, which recommends a staged exploration program with an estimated total budget of approximately US$2.4 million. QS Holdings has engaged ECM Capital Advisors for a non-brokered private placement of subscription receipts targeting gross proceeds between C$10 million and C$20 million, with closing conditional on TSXV acceptance of the transaction.

IAMGOLD Corporation has completed the sale of its indirect 35% interest in the Bambadji Joint Venture in Senegal to Fortuna Mining Corp., generating approximately $70 million in cash proceeds before taxes and transaction costs. The total consideration payable by Fortuna to the joint venture partners on a combined 100% basis consists of $200 million in cash at closing and a 0.5% net smelter return royalty capped on the first 1.75 million ounces of gold produced from the Bambadji permit. IAMGOLD retains its proportionate share of the royalty. The divestiture monetizes a non-core exploration asset and supports the company's focus on its operating and development portfolio.

Awalé Resources has completed its $20.7 million strategic financing with the closing of the final tranche, securing a $1.69 million equity investment from Newmont Ventures. Newmont subscribed for 1,982,538 common shares at $0.85 per share, maintaining its approximately 8.2% ownership stake in Awalé. The overall offering, which also included investments from Predictive Discovery and Fortuna Mining, brings Awalé's cash position to over $36.5 million. Proceeds will primarily fund exploration on Awalé's wholly owned properties within the Odienné Project in Côte d'Ivoire, while Newmont continues to finance the Odienné Joint Venture separately.

Fortuna Mining Corp. reported second quarter 2026 results featuring $200.8 million in adjusted EBITDA with a 63% margin and $85.7 million in free cash flow from ongoing operations. The company produced 72,217 gold equivalent ounces at a consolidated all-in sustaining cost of $2,157 per ounce, which included $49 per ounce from external factors and $115 per ounce from one-time operational items. Fortuna also announced a final investment decision for the Séguéla plant expansion and delivered a feasibility study for the Diamba Sud project, which together are expected to grow production by 60% to over 500,000 ounces per year. The company returned $82.1 million to shareholders through share buybacks during the quarter and maintained a strong balance sheet with $756.7 million in liquidity and a net cash position of $435 million. Effective September 1, Luis Dario Ganoza will be promoted to President and Kevin O'Reilly to Chief Financial Officer.

Fortuna Mining Corp. has approved a 30% capacity expansion of its Séguéla Gold Mine in Côte d’Ivoire. The project will increase processing throughput from 1.75 million tonnes per annum to 2.3 million tonnes per annum, with average gold recovery expected to reach 94.5%, supporting average annual production of more than 200,000 ounces over the next decade. Estimated construction capital is $109 million, to be funded from operating cash flow and backed by approximately $800 million in liquidity as of the end of the first quarter of 2026, with a projected payback period of about 2.5 years. The expansion includes upgrades to the processing plant, supporting infrastructure, and development of the Sunbird underground mine, with construction expected to begin in the second half of 2026 and ramp-up to full throughput targeted for the second half of 2028. President and CEO Jorge A. Ganoza said the expansion advances Fortuna’s objective of increasing consolidated annual gold production toward 500,000 ounces by 2028.

Awalé Resources has closed a roughly $19 million strategic financing with Predictive Discovery and Fortuna Mining. The company issued 22,337,664 common shares at $0.85 per share for total gross proceeds of $18,987,000, with Predictive Discovery subscribing for $14,146,000 and Fortuna for $4,841,000. Following the placement, Awalé holds over $35 million in cash, while Newmont continues to fund the Odienné Joint Venture in Côte d'Ivoire. Predictive Discovery becomes the third strategic shareholder, joining Fortuna and Newmont, and now holds approximately 11.8% of the company, while Fortuna's stake rises to about 14.7%. Proceeds will primarily advance exploration on Awalé's 100%-owned properties within the Odienné Project.

Fortuna Mining has scheduled the release of its second-quarter financial statements and management discussion and analysis for August 5, 2026, after market close, with a management conference call to follow on August 6. The company's share price recently stood at CA$12.09, reflecting a 2.20% gain over one day and a 5.68% gain over seven days, while the one-year total shareholder return reached 29.17%. A widely followed narrative among investors pegs Fortuna Mining's fair value at CA$18.65, implying the stock is 35.2% undervalued, based on expectations of higher future earnings and margins supported by expansion at Seguela and development of Diamba Sud.

Fortuna Mining Corp. reported second quarter 2026 production of 72,217 gold equivalent ounces, broadly in line with the prior quarter and slightly above the same period last year. First-half production totaled 145,089 gold equivalent ounces, positioning the company to achieve its 2026 annual guidance of 281,000 to 305,000 ounces. The company advanced key growth initiatives, including completing process plant expansion studies at the Séguéla mine that could increase capacity to approximately 2.3 million tonnes per annum, with a construction decision expected in the coming weeks. The Diamba Sud gold project moved closer to a final investment decision after receiving its environmental and social impact assessment and publishing feasibility study results showing an after-tax net present value of one billion dollars and an internal rate of return of 60 percent at a gold price of 3,500 dollars per ounce. Fortuna also returned 80.2 million dollars to shareholders through share repurchases during the quarter, while regrettably reporting a fatal accident involving a contractor employee at Séguéla.

Fortuna Mining has announced positive results from the feasibility study for its Diamba Sud gold project in Senegal, confirming an economically robust open-pit conventional carbon-in-leach gold mine. The study shows an after-tax net present value of $1 billion, an internal rate of return of 60% at $3,500 per ounce gold, and a mine life of 9.4 years, which is more than a year longer than the preliminary economic assessment from last year. Average annual gold production is targeted at 158,000 ounces over the first four years at an average all-in sustaining cost of $1,056 per ounce, with an average AISC of $1,332 per ounce over the life of the mine, reflecting an 8% increase over the PEA, while estimated initial capital costs rose 40% to $397.5 million due to the longer mine life. Diamba Sud now has an estimated probable reserve base of 20.5 million metric tons grading 1.75 grams per ton for 1.1 million ounces of gold. First gold production is targeted by the second quarter of 2028 following an expected final investment decision after receipt of the mining permit. President and CEO Jorge Ganoza said that together with the Séguéla mine expansion, Diamba Sud supports the company's plan to grow its annual gold production rate by about 60% to more than 500,000 ounces in 2028.

Fortuna Mining Corp. announced it has received environmental approval from Senegal's Ministry of Environment and Ecological Transition for its Diamba Sud Gold Mine. The permit was granted within nine months of submission, which the company says highlights the quality of its work. The Diamba Sud project, located in Senegal, is in the late stages of permitting and feasibility and is central to Fortuna's strategy of producing more than 500,000 ounces of gold annually from long-life assets. A January 2026 estimate showed Indicated Mineral Resources of 1.25 million ounces of gold, a 73% increase from the prior estimate, with 94% of the project's total gold now classified as indicated. With the environmental approval in hand, Fortuna is advancing early construction works and expects a final construction decision in mid-2026.