FG Gold Limited (FG Gold) has reached financial close and made its first drawdown on a US$330 million senior debt package from Africa Finance Corporation (AFC) and the African Export-Import Bank (Afreximbank), securing the development of Sierra Leone’s flagship Baomahun Gold Project.
The landmark agreement marks one of the largest project financing deals in the country’s mining history and paves the way for the creation of Sierra Leone’s first large-scale commercial gold mine. Additional capital mobilisation was supported by Trafigura Group.
The senior debt facility completes the funding required for full project delivery, building on AFC’s earlier US$100 million investment in gold streaming and mezzanine arrangements. Combined with Afreximbank’s US$75 million contribution, total investment from leading African Development Finance Institutions now stands at US$430 million. This comprehensive financing package enables FG Gold to accelerate construction and maintain its timeline toward the first gold pour.
AFC’s anchor investment proved vital in attracting further financiers. “The anchor investment provided by AFC was instrumental in crowding in additional financiers and establishing the confidence needed to mobilise further capital for the project,” said Oliver Tunde Andrews, Founder and Executive Chairman of FG Gold.
He added, “This achievement marks a new chapter not only for FG Gold but also for Sierra Leone. The Baomahun Project demonstrates that Africa has the capacity, not just in resources, but in financing sophistication, technical capability, and institutional collaboration to develop large-scale, globally competitive mining assets. We are delighted with our constructive ongoing collaboration and partnership with the Government of Sierra Leone and the local community, as well as the backing of Africa’s leading DFIs in bringing this transformative project to life.”
AFC President & CEO Samaila Zubairu noted the project’s strategic significance for African-led development. “AFC is proud to have led and structured the Baomahun Gold Project, a development that embodies our mission to catalyse sustainable, African-led industrial growth. This transaction demonstrates what can be achieved when African institutions collaborate to unlock the value of our continent’s resources. Baomahun will not only generate long-term economic benefits for Sierra Leone but also establish a benchmark for responsible, world-class mining development across Africa.”
Afreximbank echoed this commitment. Dr. George Elombi, President and Chairman of the Board of Directors, stated, “Afreximbank is delighted to partner on a project that has economic significance for Sierra Leone and the wider continent. Our financing reflects a commitment to supporting value creation within Africa by enabling sovereigns and private developers to harness their natural resources for domestic wealth creation and inclusive growth and development. The Baomahun Gold Project stands as a powerful example of African capability, innovation, and collaboration.”
Supporting the project’s financing structure, Gonzalo De Olazaval, Global Head of Metals and Minerals at Trafigura, said: “We are pleased to support Sierra Leone’s first large-scale commercial gold mine in partnership with AFC and Afreximbank. Our participation in this debt underscores our growing footprint in gold markets, complemented by the global reach and scale of our broader metals business.”
The Baomahun Gold Project is being driven by Boxmoor Au and the Africa Minerals and Metals Processing Platform (A2MP), supported by an African-led team and top-tier partners including Lycopodium, Knight Piésold, CrossBoundary Energy, and Komatsu/PanAfrican Equipment. The development is widely recognised as one of Sierra Leone’s most pioneering mining undertakings, introducing national firsts in financing, engineering, power solutions, and community partnership.
FG Gold is already a major employer in Sierra Leone, with 90% of its workforce drawn from local communities. During operations, the Baomahun mine is expected to support up to 900 direct and indirect jobs, contribute around 10% of national GDP, and generate substantial supply chain opportunities.
Sierra Leone’s Minister of Mines and Mineral Resources, the Honourable Julius D. Mattai, welcomed the milestone. “The Baomahun Gold Project represents a milestone for Sierra Leone’s mining sector and a clear signal of the confidence that respected African institutions place in our investment environment. This financing marks a new era of responsible, community-oriented mineral development. We welcome FG Gold’s commitment to local participation, skills development, and shared prosperity, and we look forward to the transformational impact Baomahun will deliver for generations to come.”
Community development is already a central pillar of the project. FG Gold has committed 1% of gross revenues to a Community Development Fund to support education, healthcare, agriculture, infrastructure, and social enterprise in affected areas. Early initiatives include the Baomahun Community Centre, St. Joseph Bakhita Primary School, the upgraded Baomahun Health Centre, and improvements to the 66 km Matotoka–Baomahun access road.
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