FG Gold has secured US$330 million in senior debt financing from Africa Finance Corporation (AFC) and Afreximbank, enabling full development of the Baomahun Gold Project, a move that could transform Sierra Leone’s economic landscape.
Combined with prior commitments, including AFC’s earlier US$100 million in streaming and mezzanine financing, the latest injection brings total development funding from African development finance institutions to US$430 million. This includes a US$75 million contribution from Afreximbank.
According to FG Gold, the Baomahun Gold Project is slated to become Sierra Leone’s first large-scale commercial gold mine, and one of Africa’s most significant gold developments. The project covers roughly 124.27 km² and holds a JORC-certified resource of 5.81 million ounces.
Once operational, Baomahun is expected to produce an average of 150,000 ounces of gold per year over its 12.5-year life, with production peaking at around 201,000 ounces annually.
FG Gold says the mine will support up to 900 direct and indirect jobs, with 90 per cent of its current workforce already drawn from Sierra Leone and could contribute approximately 10 per cent to the country’s Gross Domestic Product (GDP) once fully operational.
Beyond raw production, the project includes major infrastructure development: a processing plant, 34 MW power generation (including solar and battery energy storage), tailings and water-management systems, a site camp, processing infrastructure, and access road improvements, a comprehensive buildout that reflects modern mining standards.
Local community impact is also central to FG Gold’s plans. The company has committed 1 per cent of gross revenues to a Community Development Fund to support education, healthcare, agriculture, infrastructure and social enterprise in project-affected communities.
Samaila Zubairu, President & CEO of Africa Finance Corporation (AFC), commented: “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.”
Early investments under this commitment include a community centre, a primary school, renovation of a local health centre and improvements to the 66 km Matotoka–Baomahun access road.
“This achievement marks a new chapter not only for FG Gold but for Sierra Leone,” said Oliver Tunde Andrews, Founder and Executive Chairman of FG Gold. “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.”
The deal also attracted participation from global commodity trader Trafigura Group, signalling confidence from international markets in the viability of African gold production under African ownership and leadership.
Gonzalo De Olazaval, Global Head of Metals and Mineral at Trafigura added, “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.”
Construction and development will be executed by a predominantly African technical team in partnership with leading industry firms, including Lycopodium (EPCM), Knight Piésold, CrossBoundary Energy and Komatsu/PanAfrican Equipment. The model is intended as a benchmark for future mining operations across the continent.
For Sierra Leone, the financing represents more than a corporate milestone. According to the country’s Minister of Mines and Mineral Resources, the deal sends a clear signal to global investors that the nation is open for responsible, community-oriented mineral development, a new era for the mining sector.
FG Gold’s founder described the development as proof 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.”
In a continent where mineral wealth often attracts foreign-led extraction, Baomahun stands out as an African-led initiative: financed, developed and operated by African institutions and local communities, offering a model of what resource sovereignty and shared prosperity might look like.
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