October 24, 2024 – Freetown, Sierra Leone – FG Gold Limited (“FG Gold” or “the Company”) is pleased to announce it has secured a US$20 million equity investment (“the Investment”) by Fundo Soberano de Angola (“Angola Sovereign Fund” or “FSDEA”) in its Baomahun Gold Project (“Baomahun” or “the Project”). With this investment, FSDEA becomes the Project’s first institutional shareholder and its third shareholder alongside Boxmoor Hills DMCC and Eagle Eye Asset Holdings PTE LTD.
The Investment will complement the senior debt financing to support the full development of the Baomahun Project, through to first gold pour and production, particularly the mobilization of key project contractors required to ramp up construction over the next few months. FSDEA’s investing experience in the natural resources sector, particularly mining, deepens the Company’s leadership and combined with the FG Gold team’s financial and technical expertise fortifies its capacity to execute the Baomahun Gold Project. Baomahun is one of the largest gold projects currently under development in Africa and FSDEA’s investment in this flagship project sets a clear tone and phenomenal precedent for African ownership.
Oliver Tunde Andrews, Executive Chairman of FG Gold, stated “Having a partner of FSDEA’s stature and reputation on this project illustrates the transformative potential of Baomahun for Sierra Leone and we look forward to their contribution as a key shareholder that will enhance value for all project stakeholders. This transaction demonstrates the power of cross collaboration among African nations, and we hope that this investment will serve as an exemplar for investments by Africans in African assets.”
This marks FSDEA’s first investment in Sierra Leone and together with Africa Finance Corporation (“AFC”) and African Export-Import Bank (“Afreximbank”) forms a collective of first-rate African institutions demonstrating support for FG Gold and their commitment to the development of Africa’s key resource assets and economic growth of its countries.
Armando Manuel, Chairman of FSDEA, commented “We are excited to make this significant investment in FG Gold’s Baomahun Gold Project. This strategic partnership not only demonstrates our commitment to supporting the growth of key resource sectors across Africa but also aligns with FSDEA’s mission to generate long-term returns while contributing to the sustainable economic development of the continent. The Baomahun Gold Project stands as a beacon of opportunity, and our investment signifies a vote of confidence in Sierra Leone’s economic potential. We are proud to join other African institutions in fostering intra-African collaboration and investment, which will drive shared prosperity across the region.”
Upon completion, the Baomahun Gold Project will be a significant contributor to the economic and social development of Sierra Leone, accounting for c.10% of the nation’s gross domestic product (“GDP”) and providing direct and indirect employment for up to 900 Sierra Leoneans during operations. To date, FG Gold has already established an education fund for tertiary education; completed an upgrade of the 66km Matotoka site access road, providing market linkages to boost local trade; construction of the St. Joseph Bakhita Primary School; renovation of the Baomahun Health Centre; clearing of key infrastructure areas including that for the power, process plant and quarry. Construction of new accommodation camp and administration areas are also in the advanced stages and crucial mill packages for the process plant have started to arrive in Sierra Leone.
About Angola Sovereign Fund
The Angola Sovereign Wealth Fund, abbreviated as FSDEA, is a public collective institution with legal personality and administrative, financial, and asset autonomy, created under Presidential Decree No. 48/11, of 9th March. FSDEA is an institution specialising in strategic investments, responsible for establishing a sustainable mechanism that ensures the maximisation of long-term returns, capital preservation, and support for the country’s sustainable socio-economic growth through investments in strategic sectors, either in Angola or abroad, with a view to maximising capital and generational wealth transfer.
About FG Gold Limited
FG Gold is a gold development company based focused on constructing and operating the Baomahun Gold Project located in Sierra Leone. Baomahun is one of the largest deposits under development in Africa and will become Sierra Leone’s first large scale commercial gold mine. The Project has a confirmed JORC compliant mineral resource of 5.81 million ounces grading at 2.01g/t and is expected to deliver an average gold production of ~147,000 ounces over a 12.5-year mine life peaking at 234,000 ounces.
For further information, please contact:
Head of Corporate Finance & Corporate Development: Nicola Asgill | nicola.asgill@fg-gold.com