FG Gold Limited has reached the closing of a US$330 million senior debt facility with African Finance Corporation (AFC) and Afreximbank, paving the way for the full development of Sierra Leone’s flagship Baomafun Gold Project, the country’s first modern, large-scale commercial gold mine.
This financing is strengthened by additional capital mobilized by Trafigura Group, bringing the total investment from African Development Finance Institutions to USD 430 million. According to FG Gold, this milestone is one of the most significant project finance achievements in Sierra Leone’s history, reshaping the country’s mining sector and unlocking transformative assets that are expected to deliver far-reaching economic benefits.
FG Gold founder and executive chairman Oliver Tunde Andrews said the achievement was a defining moment for the country. He noted that the Baomafun project demonstrates Africa’s growing ability to develop world-class mining ventures through sophisticated financing, technical expertise and institutional collaboration. Andrews added that AFC’s anchor investment played a key role in attracting additional funders and building long-term confidence in the project’s viability.
AFC President and CEO Samaira Zubair said the development of Baomafun is consistent with AFC’s mission to foster sustainable Africa-led industrial growth. He emphasized that this project will set a new standard for responsible and globally competitive mining development on the continent.
Afreximbank President and Chairman of the Board, Dr. George Elombi, said the bank’s participation reflects the bank’s commitment to helping African countries transform their natural resources into domestic wealth and inclusive growth. Gonzalo de Olazaval, Trafigura’s Global Head of Metals and Minerals, added that the company’s involvement confirms the company’s growing presence in the gold market and its confidence in the project.
The Baomahun Gold Project is being executed through Boxmoor Au and the African Minerals and Metals Processing Platform (A2MP), with the support of an engineering team dominated by African experts. Key partners including Lycopodium, Knight Piésold, CrossBoundary Energy and Komatsu/PanAfrican Equipment are contributing to the project, which is widely recognized as one of the most advanced mining developments in Sierra Leone.
The project introduces several nation-first initiatives in financing, engineering standards, power solutions and community partnerships, providing a model for delivering mining ventures with significant impact across Africa.
FG Gold already employs 90 percent of its workforce from Sierra Leoneans. Once operational, the mine is expected to support up to 900 direct and indirect jobs, contribute around 10 per cent of gross domestic product (GDP) and stimulate significant growth in the local supply chain.
Sierra Leone’s Minister of Mines and Mineral Resources, Julius D. Mattai, praised the achievement as a strong demonstration of investor confidence in the country’s mining environment and welcomed FG Gold’s commitment to skills development, regional inclusion and community-centered development.
The company donates 1% of its gross profits to community development funds aimed at improving education, healthcare, infrastructure, agriculture, and social services. Initial efforts include the establishment of the Baomafun Community Center, the construction of St. Joseph Bakita Primary School, the renovation of the Baomafun Health Center, and the upgrading of the 66-kilometre access road from Matotoka to Baomafun. These interventions aim to embed long-term shared prosperity in the surrounding community as the project progresses.
Once operational, Baomafun will be one of Africa’s leading new gold operations and is expected to produce an average of 150,000 oz per year over a 12.5-year mine life, with peak production of 201,000 oz.
This advanced facility completes the financing package required for the construction and development of the project and complements AFC’s initial investment of US$100 million in gold streaming and mezzanine efforts. Afreximbank contributed US$75 million to the total package.
Mr Andrews highlighted that this project demonstrates what can be achieved when African institutions work together to unlock the value of the continent’s resources. He expressed pleasure at the constructive partnership with the Government of Sierra Leone, local communities and Africa’s leading development finance institutions.
This funding milestone comes as construction work is 30 percent complete and first gold production is expected in 2026. The project will be a key test of Africa’s ability to finance and deliver large-scale mining infrastructure, primarily drawing on the continent’s capital and expertise.
Industry analysts see the deal as evidence of growing sophistication in project finance in Africa, particularly in resource sector development that balances commercial viability with community impact and environmental responsibility. The involvement of multiple African institutions signals deepening regional financial integration and risk-sharing capabilities.
The successful completion of the US$330 million financing secures Baomahun’s full development path and brings Sierra Leone into the ranks of Africa’s emerging value-driven gold producing countries, marking a historic step towards sustainable economic transformation.
