IFC, a member of the World Bank Group, has taken an 8% equity stake in Roxgold, a Toronto-based gold exploration and development company, to support sustainable development of the Yaramoko gold mine in western Burkina Faso.

Namrata Thapar, IFC Global Head of Mining, said: “The Yaramoko mine has tremendous potential to help Burkina Faso create jobs and raise government revenues for much needed development projects. We look forward to helping Roxgold advance this project with high environmental and social standards and strengthen its plans to help develop the local economy.”

The $13.9m (18.4m CAD) investment is IFC’s third investment in Burkina Faso’s mining sector, which is one of the West African country’s leading economic drivers.

It is part of IFC’s strategy to help junior mining companies advance well-managed mining projects in Africa that boost government revenues and economic growth.

The Yaramoko mine is expected to raise government revenues for Burkina Faso and create several hundred jobs in an area of the country where employment opportunities are currently limited.

With IFC’s support, Roxgold will develop a strategy to enhance the Yaramoko mine’s benefits to the local community, including through local employment and procurement.

Construction of the Yaramoko mine is currently underway, and Roxgold expects to start production in the second quarter of 2016.

“We are very pleased to have IFC as one of our shareholders,” said Roxgold President and CEO John Dorward.

“IFC is a well-regarded investor known for conducting detailed due diligence on the technical, social and environmental aspects of development projects throughout the world and we look forward to continuing to benefit from its experience and resources,” he added.