FG Gold Limited has signed a Memorandum of Understanding (MoU) with the Bank of Sierra Leone (BSL) for the purchase of gold from the Baomahun Gold Project once production begins.
The agreement marks the first time BSL has entered into such an arrangement with a large-scale gold mining company, representing a major milestone in the Bank’s Gold Purchasing Programme.
Under the MoU, BSL will purchase gold produced at Baomahun in local currency. According to FG Gold, the arrangement will represent the largest gold offtake by the Bank in Sierra Leone’s history.
FG Gold said the agreement sets the framework for a formal gold purchase arrangement and demonstrates growing national participation in Sierra Leone’s mineral resources.
The company described the signing as another milestone for the Baomahun project, which it said is setting a new benchmark for large-scale mining and infrastructure development in Sierra Leone.
With an estimated investment of about US$700 million, the Baomahun Gold Project is expected to be one of the largest mining and infrastructure developments in the country.
FG Gold said it appreciates BSL’s confidence in the company and supports the initiative to strengthen Sierra Leone’s gold reserves and contribute to economic growth.
Upon completion, the Baomahun Gold Project is expected to produce approximately 150,000 ounces of gold annually while creating direct and indirect employment opportunities and generating long-term economic and social benefits for communities around the project.