FG Gold Limited has secured a US$ 330 million senior debt package from the Africa Finance Corporation (AFC) and the African Export-Import Bank, paving the way for the launch of Sierra Leone’s first large-scale commercial gold mine.
The financing agreement, one of the biggest mining deals in the country’s history was formalised during AFC’s investor forum in London and will underpin development of the Baomahun Gold Project.
Located across 124 km² in the Bo and Tonkolili districts, about 200 km east of Freetown, Baomahun hosts a JORC-certified resource of 5.81 million ounces. The mine is expected to produce between 147,000 and 184,000 ounces annually in its initial years, with room for expansion, potentially placing it among Africa’s significant new gold operations.
Construction is already well advanced, with civil works on the carbon-in-leach plant, tailings facility, access roads and site camp underway. Power for the project will come from a hybrid system combining solar PV, battery storage and thermal generation under a supply agreement with independent power producer CrossBoundary Energy part of efforts to ensure cleaner and more reliable energy.
Sierra Leone’s Minister of Mines and Mineral Resources, Julius Daniel Mattai, called the financing a “turning point” for the sector. He said the project reflects a strengthened regulatory framework under the 2023 Mines and Mineral Development Act, highlighting commitments to environmental and social standards, gender inclusion and community development.
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The government expects the mine to generate substantial employment, strengthen local supply chains and increase tax revenues. FG Gold has pledged to allocate one percent of gross revenues to a Community Development Fund to support health, education, agriculture and infrastructure in surrounding communities. Early initiatives include upgrading the Matotoka access road, building a primary school and refurbishing a local health centre.
