Baomahun gold project financing reaches US$330m close in Sierra Leone

Tuesday 2nd December 2025

by inAfrika Newsroom

Baomahun gold project financing hit a major milestone today as FG Gold, the Africa Finance Corporation and Afreximbank announced financial close on a US$330 million senior debt package. The deal supports development of Sierra Leone’s flagship large-scale commercial gold mine.

Afreximbank and AFC will provide long-tenor funding for mine construction, processing facilities and associated infrastructure. FG Gold says the project will create thousands of direct and indirect jobs during peak construction and operations, while also expanding export earnings for the country.

The Baomahun deposit lies in the country’s southern region and has been under exploration for more than a decade. However, weak commodity prices and financing hurdles delayed full development. Today’s Baomahun gold project financing announcement signals renewed appetite for West African gold assets, even as investors scrutinise governance and environmental standards.

Sierra Leone’s government has pledged to improve transparency around mining contracts and revenue flows, partly in response to civil society pressure. Officials say they will enforce local-content rules and community development agreements linked to the project.

Why it matters for Baomahun gold project financing

Baomahun gold project financing underscores how African resource projects now rely on regional financial institutions as much as global banks. Afreximbank and AFC increasingly act as anchor lenders, then crowd in commercial partners. Their involvement can shorten timelines and give governments more negotiating leverage.

For Sierra Leone, a successful project could boost fiscal revenues, foreign exchange and investor confidence after years of health crises, floods and macroeconomic stress. It may also set a benchmark for how future mines handle community relations, resettlement and environmental management.

Yet gold markets remain volatile. Moreover, weak oversight could still fuel local grievances if promised benefits fail to materialise. The true test for Baomahun will come not at financial close, but in how transparently and fairly the mine operates over its full life.