FG Gold has secured a $330 million senior debt package from the Africa Finance Corporation (AFC) and the African Export-Import Bank (Afreximbank) to accelerate construction of the Baomahun Gold Project. This will be Sierra Leone’s first large-scale commercial gold mine. The financing follows an earlier $100 million investment by AFC, bringing the total committed capital from AFC and Afreximbank to $430 million, with Afreximbank contributing $75 million.
FG Gold Executive Chairman Oliver Andrews told CNBC Africa that the Sierra Leone government and African development finance institutions played an important role in completing the transaction. According to the company, approximately 30% of the construction work has been completed, and the first gold production is expected in 2026.
Baomahun is being promoted as a flagship project for Sierra Leone’s mining industry. At full capacity, the mine is expected to produce approximately 150,000 ounces of gold per year on average, peaking at 210,000 ounces, with a projected operational life of approximately 12.5 years. According to FG Gold, the project could contribute up to 10% of national GDP at peak output, directly or indirectly supporting up to 900 jobs and promoting a significant local supply chain.
The company has pledged 1% of its gross revenue to a Community Development Fund, which will support initiatives in agriculture, education, healthcare, infrastructure, and social enterprises.
A school, a health centre, a community centre, and road improvements are among the projects already being funded. FG Gold also claims that its workforce is about 90% Sierra Leonean.
The new funding is intended to move the Baomahun project from advanced construction to production, bringing economic and social benefits to the local community while establishing a major new gold operation in Western Africa.
