FG Gold Limited has closed a US$330 million senior debt agreement with the Africa Finance Corporation and the African Export-Import Bank, unlocking financing for the development of the Baomahun Gold Project — set to become Sierra Leone’s first large-scale commercial gold mine. The facility was formalised during AFC’s investor forum in London, marking one of the most significant mining deals in the country’s history.
The Baomahun project spans 124.27 km² in the Bo and Tonkolili Districts, roughly 200 km east of Freetown, and boasts a JORC-certified resource of 5.81 million ounces. Under its plan the mine is expected to generate around 147,000 to 184,000 ounces annually in the early years, with potential to scale up — positioning it among Africa’s major gold developments.
Construction work has already advanced significantly. Civil-works, including construction of the carbon-in-leach processing plant, tailings facility, access road, and site camp, are in progress. A power infrastructure is also being developed through a hybrid system combining solar PV, battery storage, and thermal generation under a deal with the independent power producer CrossBoundary Energy — a move aimed at achieving cleaner and more reliable energy for operations.
Sierra Leone’s Minister of Mines and Mineral Resources﹣Julius Daniel Mattai﹣hailed the deal as a “turning point” for mining investment, declaring that the project reflects a transformed regulatory and economic environment. He pointed to the 2023 Mines and Mineral Development Act as providing a robust legal foundation, highlighting commitments to environmental, social and governance standards, gender inclusion and community benefits.
The government anticipates the mine will create substantial employment — direct and indirect — support local supply chains, and generate tax revenues. FG Gold has pledged that one per cent of gross revenues will be channelled into a Community Development Fund to finance health, education, agriculture and infrastructure in host communities. Early social initiatives already underway include upgrading the Matotoka access road, building a primary school and refurbishing the local health centre.
Industry analysts view the financing as a major signal of confidence in Sierra Leone’s potential as a mining destination. The involvement of two major pan-African financial institutions — AFC and Afreximbank — underscores growing institutional support for resource development with sustainability credentials.
The Baomahun project also aligns with broader trends in Africa’s mining sector, where hybrid energy integration, ESG compliance, and community engagement increasingly shape financing and development strategies. For FG Gold, backing from a consortium of African stakeholders including the Fundo Soberano de Angola underscores a strategy that emphasises local capital and African-led development.
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