Freetown, Sierra Leone – December 2, 2025 – In a landmark deal signaling renewed investor optimism in West Africa’s untapped mineral wealth, FG Gold Limited has secured financial close on a $330 million senior debt facility for its Baomahun Gold Project, paving the way for Sierra Leone’s inaugural large-scale commercial gold mine.
The agreement, finalized on December 1 with the Africa Finance Corporation (AFC) and the African Export-Import Bank (Afreximbank), brings total secured financing to $430 million and accelerates construction toward a first gold pour targeted for late 2025.
Afreximbank’s $75 million stake, combined with AFC’s earlier $100 million in gold streaming and mezzanine funding, has unlocked the project’s full development pathway, including core infrastructure like processing plants, power generation, and an upgraded 66 km access road from Matotoka to Baomahun.
Additional capital from global commodities giant Trafigura Group further bolsters the consortium, emphasizing African-led innovation in resource extraction.
“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, during a signing ceremony in Freetown. “With the support of the Government of Sierra Leone, our local community, and leading DFIs [Development Finance Institutions], Baomahun is positioned to become a transformative project.”
The project, spanning 124 square kilometers in the Bo and Tonkolili districts about 200 km east of Freetown, boasts a JORC-certified resource of 5.81 million ounces of gold—one of Africa’s largest undeveloped deposits—and probable reserves of 1.21 million ounces.
A Game-Changer for Sierra Leone’s Mining Sector
Historically overshadowed by its diamond industry, infamous for “blood diamonds” during the 1991-2002 civil war, Sierra Leone’s mining landscape has evolved significantly. The sector, governed by the 2016 Mines and Minerals Act and the 2018 Extractive Industries Revenue Act, contributed about 4.5% to GDP in 2007 and accounts for over 67% of exports today, dominated by diamonds (46% of mineral revenue), rutile, bauxite, and iron ore.
Gold, however, has lagged, with artisanal and small-scale operations producing just 60 kg annually as of 2022—down from peaks of over 400 kg in prior years—due to smuggling, informal practices, and mercury pollution affecting rivers and communities.
Baomahun represents a seismic shift. The open-pit operation, designed with a 2.5 million tonne-per-year processing plant using cyanide leaching and carbon-in-leach recovery, is projected to yield an average of 150,000 ounces annually over a 12.5-year mine life, peaking at 201,000 ounces in early years.
At full tilt, it could inject up to 10% of national GDP through royalties (5% on gold), taxes, and supply chain spending, while creating 900 direct and indirect jobs—90% filled by locals—and stimulating ancillary industries like transport and equipment services.
FG Gold, backed by UK-based Boxmoor Au and African Minerals Partners (A2MP), has prioritized sustainability since acquiring the asset. Community initiatives include renovating the Baomahun Health Centre, building St. Joseph Bakhita Primary School, drilling boreholes, and funding scholarships, efforts lauded by local Paramount Chief Dr. Margarette Veronica Komeh Baio-Gbanie III as exceeding those of prior operators dating back to the 1930s.
The project also introduces Sierra Leonean “firsts” in African-sourced engineering, renewable power solutions, and equitable partnerships, aligning with the nation’s Extractive Industries Transparency Initiative (EITI) membership since 2006.
Voices from the Partners: Betting on African Potential
The financing underscores a broader trend of pan-African collaboration in strategic minerals. “This demonstrates the power of African institutions working together to unlock the continent’s resource potential while catalysing sustainable, African-led industrial growth,” said Samaila Zubairu, President and CEO of AFC.
Afreximbank’s Dr. George Elombi echoed the sentiment: “Baomahun exemplifies African innovation and collaboration and reflects our commitment to enabling countries in Africa to harness their natural resources for inclusive growth.”
Trafigura’s Gonzalo De Olazabal highlighted the project’s global appeal: “We are pleased to support Sierra Leone’s first large-scale commercial gold mine in partnership with AFC and Afreximbank.”
Construction is already underway, with Lycopodium handling engineering, procurement, and construction management under a $68 million contract awarded in late 2023.
Broader Implications Amid Global Gold Surge
As gold prices hover near record highs, driven by geopolitical tensions and inflation hedging, Baomahun arrives at a fortuitous moment for Sierra Leone, whose economy is rebounding from Ebola and COVID disruptions with 4.4% growth projected for 2025, partly fueled by mining expansion. Yet challenges persist: Artisanal mining, employing 2.6% of the workforce, fuels smuggling (up to 42% of gold exports informal) and environmental harm, while infrastructure gaps and corruption—ranking Sierra Leone 110th on Transparency International’s index—demand vigilant oversight.
Officials and analysts view Baomahun as a blueprint for “responsible, world-class mining” that could draw further investment to Sierra Leone’s under-explored greenstone belts, potentially elevating gold from a niche player to a cornerstone export.
As Andrews put it, this deal “highlights growing confidence in Africa-led resource development,” positioning the nation not just to extract wealth, but to build it sustainably for generations.
