UK-based SigraFi has secured a $35 million credit facility to buy gold from small-scale mining cooperatives in Africa and South America. The company wants to bring more of the artisanal gold supply into the formal market.
At a glance
- A group of British and UAE investors led by Ronin Commercial Brokers is providing the $35 million facility.
- SigraFi buys gold under multi-year contracts from organised cooperatives and aggregators.
- Its partner PeaceGold works with 11 cooperatives representing about 25,000 miners in eastern Congo.
Background
Artisanal and small-scale gold mining (ASGM) is mining done by individuals and small groups, often with simple tools. It produces at least a fifth of the world's newly mined gold. Many of these miners sell informally because they lack the money, paperwork and buyers that large mining companies have. An offtake contract is an agreement to buy a producer's output over time.
What happened
SigraFi, a gold offtake company based in the UK, has secured a $35 million credit facility. A consortium of British and UAE investors, led by UAE-based Ronin Commercial Brokers, is providing the money. The facility is available for immediate drawdown.
SigraFi will use it to expand its work with existing suppliers in the Democratic Republic of Congo, Zambia and South America. It also plans to sign up new cooperatives and aggregators, the traders who collect gold from many small miners.
How the model works
SigraFi buys gold under multi-year contracts from organised artisanal mining cooperatives. Guaranteed buying gives these groups a steady outlet for their gold at competitive prices. In eastern Congo, SigraFi works with PeaceGold, which acts as the aggregator and export partner.
PeaceGold works with 11 cooperatives in Ituri Province, representing about 25,000 miners. "Artisanal miners produce one in every five ounces of new gold, yet most are shut out of the formal market," said SigraFi's executive chairman, Stefan Allesch-Taylor. He said they lack the capital, compliance support and buyers the rest of the industry takes for granted.
What it means
The deal is small next to the global gold market, but it targets a large share of supply. By Allesch-Taylor's account, most of the miners behind that fifth of new gold still sell outside the formal market.
For SigraFi, the facility gives it capital to grow beyond its current suppliers. The company has not said how much gold it expects to buy with the money.
Our read
Outlook: neutral. The deal changes who buys some artisanal gold, not how much gold is mined. It has no measurable effect on gold prices.
What to watch
- New cooperatives and aggregators SigraFi signs in Africa and South America.
- How much of the $35 million facility SigraFi draws down and how fast.
- Whether other lenders follow with finance for artisanal gold supply.
For information only, not investment advice.
Gold price in India
metalscost.com India reference price as of 2026-10-24.
Detailed analysis
Supply Drivers
Artisanal miners produce about one in five new ounces of gold, much of it outside formal markets.
Mining Production
The facility funds purchases from existing cooperatives rather than new mining, so it does not add supply.
What could lift prices
- More traceable artisanal gold could widen the pool of supply that refiners can accept.
- Investor appetite for gold-backed finance shows confidence in gold's long-term value.
What could weigh on prices
- Bringing more artisanal gold into formal channels could add to the gold available to refiners.
- A $35 million facility is too small to shift global supply either way.
Country impact
| Country | Impact | Reason |
|---|---|---|
| Democratic Republic of the Congo | Medium | About 25,000 miners in Ituri Province work with SigraFi's partner PeaceGold. |
| Zambia | Low | SigraFi already buys from contracted suppliers in the country. |
Industry impact
| Industry | Effect | Reason |
|---|---|---|
| Gold Mining | Positive | Small-scale miners gain a steady, contracted buyer for their gold. |
| Bullion Trading | Neutral | A small new source of traceable gold enters formal trading channels. |
Who gains, who loses
- Artisanal mining cooperatives: They gain multi-year contracts and access to formal buyers.
- SigraFi: The facility gives it capital to expand beyond its current suppliers.
- Informal gold traders: Cooperatives with contracted buyers have less reason to sell through informal channels.
Other ways this could play out
- If SigraFi signs many new cooperatives, it could seek a larger facility to keep up.
- If cooperatives struggle to meet compliance standards, the facility may be drawn down slowly.
Price risks
- Gold prices are driven by interest rates and central bank buying, not deals of this size.
- Supply disruptions in artisanal mining regions would matter more than this facility.
Technical view
Price is trading below both its 20-period and 50-period moving averages, a bearish alignment.
Computed from metalscost.com's own stored price history.
United Kingdom