By: CNBC Africa

FG Gold has achieved a major milestone by securing a $330 million senior debt financing package for its Baomahun Gold Project in Sierra Leone. The funding, provided by leading African development finance institutions—the Africa Finance Corporation and the African Export-Import Bank—will enable the development of the country's first large-scale commercial gold mine. This landmark deal underscores a significant shift towards African-led financing for major resource projects on the continent.

According to FG Gold's Executive Chairman, Oliver Andrews, the successful financing was heavily dependent on the strong support from the Sierra Leonean government and the decisive risk-taking by African DFIs. He emphasized that this approach marks a departure from the traditional model where early-stage mining projects seek capital from distant equity markets in Australia or Canada, instead anchoring the project's validation and growth within Africa from the outset.

The project is already well underway, with 30% of construction completed. With the financing now secured, the company is confidently progressing toward its target of first gold production by the end of 2026. The Baomahun project is substantiated by considerable resources, boasting over two million ounces of gold in reserves and a total resource of six million ounces.

A core tenet of FG Gold's operational philosophy is preserving what it calls the "African DNA" of the venture. This is demonstrated by a diverse, continent-wide leadership team with senior managers from Nigeria, Ghana, and Tanzania, coupled with a strong focus on local hiring and skills development. This model ensures that expertise is built within the local and regional workforce.

The project's impact is designed to extend far beyond the mine itself, with projections indicating it will contribute 10% to Sierra Leone's GDP. FG Gold is already generating tangible community benefits through infrastructure development, including the construction of roads and bridges that connect rural communities and the provision of electricity to previously underserved areas.

Looking ahead, FG Gold envisions the Baomahun project as a blueprint for a new, sustainable mining model across Africa. The company's long-term ambition is to build a continental mining platform that prioritizes deep community partnership, local economic development, and African leadership, thereby redefining how resource wealth can drive holistic prosperity.