FREETOWN, Sierra Leone – A landmark financing deal has been reached to advance Sierra Leone’s largest commercial gold mine, unlocking significant sierra leone development finance opportunities and driving long-term economic development funding in the country. FG Gold Limited has secured financial close and first drawdown on a US$330 million Senior Debt Financing agreement with Africa Finance Corporation (AFC) and the African Export-Import Bank (Afreximbank), marking one of the biggest funding for mining projects transactions in Sierra Leone’s history. Capital from Trafigura Group further strengthened the deal.
The financing package provides the full capital required to construct and operate the Baomahun Gold Project and complements AFC’s earlier US$100 million investment. With Afreximbank contributing US$75 million, total investment from African Development Finance Institutions now stands at US$430 million. This milestone places Sierra Leone among leading African jurisdictions successfully mobilizing large-scale project financing to advance responsible resource development.
Transforming Sierra Leone’s Mining Industry
FG Gold’s Executive Chairman, Oliver Tunde Andrews, described the project as a breakthrough for African-led industrial transformation, noting its role in strengthening sierra leone development finance, local partnerships, and sector capability. Andrews emphasized that AFC’s anchor investment was instrumental in attracting additional partners and building investor confidence.
He stated that the Baomahun Project showcases Africa’s technical and financial capacity to build globally competitive mining assets. Collaboration with Sierra Leone’s government and local communities remains central to the project’s sustainable development strategy.
African Institutions Lead Financing Innovation
AFC President & CEO, Samaila Zubairu, highlighted the deal as a model for African-led industrialization. He said the project will create long-term economic value for Sierra Leone while establishing a benchmark for responsible mining across Africa. Afreximbank leadership echoed this sentiment, noting that the project will promote domestic wealth creation and support sustainable economic development funding.
Trafigura underscored its commitment to gold market expansion and noted that participating in this deal builds its footprint within Africa’s minerals ecosystem.
A Modern Mining Project Built by African Expertise
The Baomahun Gold Project is being developed by Boxmoor Au and the Africa Minerals and Metals Processing Platform (A2MP), supported by leading partners including Lycopodium, Knight Piésold, CrossBoundary Energy, and Komatsu/PanAfrican Equipment. The predominantly African team is driving new standards in mining, engineering, and power solutions.
The project is recognized as a pioneering development, introducing multiple national “firsts” and laying the foundation for future funding for mining projects across the continent.
Local Employment and National Benefits
FG Gold has already achieved substantial local participation, with Sierra Leoneans representing 90% of its workforce. During operations, the mine is expected to generate approximately 900 jobs, contribute around 10% of national GDP, and stimulate local supply chain growth, strengthening sierra leone development finance outcomes.
The Minister of Mines and Mineral Resources, Julius D. Mattai, praised the financing as a milestone that signals investor confidence and supports sustainable development. He highlighted FG Gold’s commitment to skills development and community prosperity as essential to long-term economic transformation.
Community Investment and Long-Term Impact
FG Gold has dedicated 1% of gross revenues to a Community Development Fund with initiatives supporting education, health, infrastructure, agriculture, and social enterprise. Early projects include a community center, school development, healthcare upgrades, and improvements to the 66 km Matotoka–Baomahun road.
This investment model reflects increasing demand for mining companies to contribute directly to sustainable economic development funding in host communities.
About FG Gold Limited
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FG Gold is developing the Baomahun Gold Project, one of Africa’s largest deposits under construction. Once operational, it is expected to produce ~150,000 ounces of gold annually over a 12.5-year mine life, with peak output of 201,000 ounces.
About Africa Finance Corporation
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AFC was established in 2007 and has invested over US$15 billion in 36 African countries, providing infrastructure solutions in energy, transport, industrial development, and telecommunications.
About Afreximbank
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Afreximbank finances and promotes intra- and extra-African trade and has assets exceeding US$40.1 billion. It supports economic transformation across Africa through innovative financing and trade solutions.
About Fundo Soberano de Angola, Boxmoor Au, and A2MP
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These organizations focus on sustainable development, industrial investment, mining, and processing platforms across Africa.
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This story was first reported by Africa Finance Corporation (AFC). Read the full article here.
