October 16, 2024 – Freetown, Sierra Leone – FG Gold Limited (“FG Gold”), currently developing the Baomahun Gold Project (“Baomahun” or “Project”) in Sierra Leone, is pleased to announce it has secured full Executive and Credit Committee approval for a US$75 million term loan facility (“the Facility”) with African Export-Import Bank (“Afreximbank”). This Senior Secured Facility combines with Africa Finance Corporation’s (“AFC”) US$75 million commitment for a total commitment of US$150 million by leading African Development Finance Institutions (“DFI”).
This DFI tranche represents an integral part of FG Gold’s senior debt financing. The senior debt financing will support the full development of the Baomahun Project, which includes build out of all project infrastructure and purchase of all requisite equipment, through to first gold pour and production.
Oliver Andrews, Executive Chairman, stated “We are delighted at Afreximbank’s financial support and partnership with FG Gold. As an African operator, we have long championed African participation in this transformational project, and we are pleased to have the commitment of one of Africa’s leading financial institutions to the Baomahun Project. This approval is a major milestone in closing the project’s financing, which will cement the path to developing Baomahun into a world-class asset.”
The US$150 million DFI tranche approvals, follow on from AFC’s US$55 million mezzanine financing and US$45 million gold stream investment in FG Gold. These cornerstone investments demonstrate Afreximbank’s and AFC’s pledge to stimulating the development of Africa’s key resource assets and promoting the economic growth of African countries such as Sierra Leone.
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 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.
About African Export-Import Bank
Afreximbank is a Pan-African multilateral financial institution mandated to finance and promote intra-and extra-African trade. For 30 years, Afreximbank has been deploying innovative structures to deliver financing solutions that support the transformation of the structure of Africa’s trade, accelerating industrialization and intra-regional trade, thereby boosting economic expansion in Africa. At the end of December 2023, Afreximbank’s total assets and guarantees stood at over US$37.3 billion, and its shareholder funds amounted to US$6.1 billion. Afreximbank has investment grade ratings assigned by GCR (international scale) (A), Moody’s (Baa1), Japan Credit Rating Agency (JCR) (A-) and Fitch (BBB). Afreximbank has evolved into a group entity comprising the Bank, its impact fund subsidiary called the Fund for Export Development Africa (FEDA), and its insurance management subsidiary, AfrexInsure (together, “the Group”). The Bank is headquartered in Cairo, Egypt.
About Africa Finance Corporation
AFC was established in 2007 to be the catalyst for pragmatic infrastructure and industrial investments across Africa. AFC’s approach combines specialist industry expertise with a focus on financial and technical advisory, project structuring, project development, and risk capital to address Africa’s infrastructure development needs and drive sustainable economic growth.
Seventeen years on, AFC has developed a track record as the partner of choice in Africa for investing and delivering on instrumental, high-quality infrastructure assets that provide essential services in the core infrastructure sectors of power, natural resources, heavy industry, transport, and telecommunications. AFC has 43 member countries and has invested over US$13 billion across Africa since inception.
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