FG Gold Secures $330M for Sierra Leone Gold Mine, Breaking New Ground in African Mining Finance

FG Gold has finalized a $330M financing package for the Baomahun Gold Project in Sierra Leone, marking the country’s largest mining project finance transaction to date, according to African Business. The deal, backed by cornerstone investors Africa Finance Corporation (AFC) and Afreximbank, represents a pivotal moment for Sierra Leone’s mining sector while setting a new precedent for project finance in frontier markets.

Structuring the $330M Financing Deal

Led by Oliver Andrews, FG Gold turned to a sophisticated combination of funding instruments traditionally used for infrastructure development, signaling a shift away from the typical junior mining equity model. The Africa Finance Corporation invested $175M, followed by Afreximbank’s $75M. Other contributors include a $105M offtake agreement with global commodity trader Trafigura, $60M hybrid power funding from CrossBoundary Energy, and $50M in equipment financing from Komatsu Finance Europe.

This mosaic of capital ensures long-term stakeholder alignment, ownership retention, and mitigation of the risks historically associated with mining projects in Africa. Andrews emphasized the need for credible partnerships, innovation, and trust-based relationships to bring the project to life. Notably, this is the first mining project in Sierra Leone to leverage project finance to such a scale.

Market Context: Why Now?

The deal comes amid skyrocketing gold prices, driven by geopolitical instability and inflation concerns. Spot prices are hovering near $4,700 per ounce as of January 2026. Yet Andrews dismisses the notion that high gold prices alone could secure financing. He highlights the importance of overcoming perceived risks tied to Sierra Leone’s history, including civil unrest and artisanal mining practices.

Industry analysts see the Baomahun financing as setting a new benchmark for project-backed mining deals in Africa, demonstrating that resource-rich but high-risk jurisdictions can attract global capital with the right structure and credibility.

Beyond Finance: Local Impact and Legacy

Once operational, the Baomahun project is expected to add up to 10% to Sierra Leone’s GDP while generating hundreds of jobs and substantial fiscal revenue. FG Gold also prioritized community benefits, committing to building schools, clinics, and community centers even before securing the mining license.

Baomahun, spread across 124 square kilometers in the Valunia and Kunike Barina chiefdoms, will become Sierra Leone’s first large-scale commercial gold mine. With first gold expected this year, the project symbolizes not just economic potential but also a shift in how mining can be sustainably structured to benefit local stakeholders.

The Broader Implications

This deal not only positions Sierra Leone as a credible contender for global mining investment but also sets a new financing template for Africa’s resource sector. Industry watchers believe the innovative structure of FG Gold’s financing package could serve as a roadmap for other frontier mining jurisdictions grappling with investor skepticism and high barriers to entry.

For Andrews, this milestone cements his career-long vision for African resource development: smarter financing models that retain local ownership and avoid the pitfalls of traditional junior mining approaches. As he puts it, “Trust remains the most critical currency in projects of this magnitude.”

Will other African nations follow Sierra Leone’s lead in redefining mining finance? The success of Baomahun may soon reveal the answer.