Pan-African infrastructure and industrial development bank, the Africa Finance Corporation (AFC), has announced the achievement of financial close of the $330-million Senior Debt Financing facility for FS Gold’s Baomahun gold project, in Sierra Leone. It also announced the first drawdown on this facility.

The development and structuring of the facility was led by the AFC, which also involved the African Export-Import Bank (Afreximbank) and further capital mobilised by the Trafigura Group. This facility followed on from an initial $100-million AFC investment in the Baomahun project. The total investment in the project by AFC and Afreximbank now stands at $430-million, of which $75-million came from the latter.

“AFC is proud to have led and structured the Baomahun gold project, a development that embodies our mission to catalyse sustainable, African-led industrial growth,” highlighted AFC president and CEO Samaila Zubairu. “This transaction demonstrates what can be achieved when African institutions collaborate to unlock the value of our continent’s resources. Baomahun will not only generate long-term economic benefits for Sierra Leone but also establish a benchmark for responsible, world-class mining development across Africa.”

“Afreximbank is delighted to partner on a project that has economic significance for Sierra Leone and the wider continent,” affirmed Afreximbank president and board chairperson Dr George Elombi. “Our financing reflects a commitment to supporting value creation within Africa by enabling sovereigns and private developers to harness their natural resources for domestic wealth creation and inclusive growth and development. The Baomahun gold project stands as a powerful example of African capability, innovation and collaboration.”

Baomahun is regarded as a flagship large-scale commercial mining project for Sierra Leone. In full operation, it is expected have an annual gold production of some 150 000 oz/y, peaking at 210 000 oz, and to contribute 10% of the country’s GDP. It will directly and indirectly support up to 900 jobs, and promote the development of a significant local supply chain. The projected life of the mine is 12.5 years.

“This achievement marks a new chapter not only for FG Gold but for Sierra Leone,” stated FG Gold founder and executive chairperson Oliver Tunde Andrews. “The Baomahun project demonstrates that Africa has the capacity – not just in resources, but in financing sophistication, technical capability, and institutional collaboration – to develop large-scale, globally competitive mining assets. We are delighted with our constructive ongoing collaboration and partnership with the government of Sierra Leone and the local community, as well as the backing of Africa’s leading [development finance institutions] in bringing this transformative project to life. The anchor investment provided by the AFC was instrumental in crowding in additional financiers and establishing the confidence needed to mobilise further capital for the project.”

The company has assigned 1% of its gross revenues to a Community Development Fund. This supports agriculture, education, healthcare, infrastructure and social enterprises. Initiatives are already being funded, including a school, health centre, a community centre and road upgrades. FS Gold’s workforce is 90% composed of Sierra Leoneans.