Privately held exploration company FG Gold has closed and achieved its first drawdown on a US$330 million senior debt financing package with Africa Finance Corporation (AFC) and African Export-Import Bank (Afreximbank).
FG Gold has now secured the capital required to construct and develop its flagship large-scale Baomahun Gold Project.
The transaction was further strengthened by capital mobilised through Trafigura Group.
This senior financing, combined with AFC’s previously committed US$100 million in streaming and mezzanine investments, brings total African Development Finance Institution support to US$430 million including Afreximbank’s contribution of US$75 million.
FG Gold says this fully funds the project into construction and ensures momentum toward first gold production.
FG Gold Executive Chairman Oliver Tunde Andrews says the funding milestone reflects Africa’s ability to finance and develop its own large-scale mining assets using world-class standards and local expertise.
“With the support of the Government of Sierra Leone, our local community, and leading DFIs, Baomahun is positioned to become a transformative project for Sierra Leone,” Andrews says.
Led by Boxmoor Au and A2MP, and supported by a predominantly African technical team, FG Gold says Baomahun introduces several national “firsts” across financing, engineering, power solutions and community partnerships. Delivery partners include Lycopodium (EPCM), Knight Piésold, CrossBoundary Energy, and Komatsu/PanAfrican Equipment.
Upon commissioning, Baomahun is expected to be producing an average of 150,000 ounces per year over a 12.5-year mine life, with peak production of 201,000 ounces.
The mine is anticipated to support up to 900 direct and indirect jobs, with 90% local employment already achieved, and contribute around 10% of Sierra Leone’s GDP during operations.
Afreximbank President Dr George Elombi says Baomahun exemplifies African innovation and collaboration and reflects the bank’s commitment to enabling countries in Africa to harness their natural resources for inclusive growth and development.
Echoing these sentiments, AFC President Samaila Zubairu notes “the financing demonstrates the power of African institutions working together to unlock the continent’s resource potential while catalysing sustainable, African-led industrial growth”.
Write to Adam Orlando at Mining.com.au
Images: FG Gold
