FG Gold Limited has reached financial close on a US$330 million senior debt facility with the Africa Finance Corporation (AFC) and Afreximbank, clearing the way for full development of Sierra Leone’s flagship Baomahun Gold Project, the country’s first modern, large scale commercial gold mine.
The financing, strengthened by additional capital mobilised by Trafigura Group, brings total investment from African development finance institutions to US$430 million. According to FG Gold, this milestone represents one of the most significant project financing achievements in Sierra Leone’s history, unlocking a transformational asset expected to reshape the country’s mining sector and deliver far reaching economic benefits.
Oliver Tunde Andrews, Founder and Executive Chairman of FG Gold, described the achievement as a defining moment for the country. He noted that the Baomahun Project demonstrates Africa’s growing capability to develop world class mining ventures through sophisticated financing, technical expertise and institutional collaboration. Andrews added that AFC’s anchor investment played a crucial role in attracting additional financiers and building long term confidence in the project’s viability.
AFC President and Chief Executive Officer (CEO), Samaila Zubairu, said the Baomahun development aligns with AFC’s mission to catalyse sustainable, African led industrial growth. He emphasised that the project sets a new benchmark for responsible, globally competitive mining development on the continent.
Afreximbank’s President and Board Chairman, Dr. George Elombi, noted that the bank’s participation reflects its commitment to supporting African countries to transform natural resources into domestic wealth and inclusive growth. Trafigura’s Global Head of Metals and Mineral, Gonzalo De Olazaval, added that the company’s involvement underscores its expanding presence in gold markets and its confidence in the project.
The Baomahun Gold Project is being executed through Boxmoor Au and the Africa Minerals and Metals Processing Platform (A2MP), supported by an engineering team dominated by African professionals. Leading partners, including Lycopodium, Knight Piésold, CrossBoundary Energy and Komatsu/PanAfrican Equipment, are contributing to what is widely recognised as one of Sierra Leone’s most forward looking mining developments.
The project introduces several national firsts in financing, engineering standards, power solutions and community partnership, offering a model for delivering high impact mining ventures across Africa.
FG Gold already employs a workforce that is 90 percent Sierra Leonean. Once operational, the mine is expected to support up to 900 direct and indirect jobs, contribute around 10 percent of national Gross Domestic Product (GDP) and stimulate substantial growth in the local supply chain.
Sierra Leone’s Minister of Mines and Mineral Resources, Julius D. Mattai, praised the achievement as a strong signal of investor confidence in the country’s mining environment and welcomed FG Gold’s commitment to skills development, local inclusion and community centered development.
The company has committed 1 percent of gross revenues to a Community Development Fund dedicated to improving education, healthcare, infrastructure, agriculture and social enterprise. Early initiatives include the establishment of the Baomahun Community Centre, the construction of St. Joseph Bakhita Primary School, the renovation of the Baomahun Health Centre and upgrades to the 66 kilometre Matotoka to Baomahun access road. These interventions are intended to anchor long term shared prosperity for surrounding communities as the project advances.
Upon commissioning, Baomahun is expected to become one of Africa’s leading new gold operations, producing an average of 150,000 ounces per year over a 12.5 year mine life, with peak production of 201,000 ounces.
The senior facility completes the financing package required to construct and develop the project, complementing AFC’s initial US$100 million investment in gold streaming and mezzanine commitments. Afreximbank contributed US$75 million to the total package.
Andrews emphasised that the project demonstrates what can be achieved when African institutions collaborate to unlock the value of the continent’s resources. He expressed delight at the constructive partnership with the Government of Sierra Leone, the local community and Africa’s leading development finance institutions.
The financing milestone comes as 30 percent of construction has been completed, with first gold production expected in 2026. The project represents a significant test of Africa’s capacity to finance and deliver large scale mining infrastructure using primarily continental capital and expertise.
Industry analysts view the transaction as evidence of growing sophistication in African project finance, particularly for resource sector developments that balance commercial viability with community impact and environmental responsibility. The involvement of multiple African institutions signals deepening regional financial integration and risk sharing capacity.
The successful close of the US$330 million financing secures Baomahun’s full development pathway, positioning Sierra Leone to join Africa’s rising group of value driven gold producing nations and marking a historic step toward sustainable economic transformation.
