Banklink Africa Private Equities Limited has signed a strategic memorandum of understanding (MoU) with Deap Capital Management & Trust Plc and RGM Materials Solutions Ltd, repositioning Deap Capital as a specialist financial institution for the mining and critical minerals sector.
The agreement, which was formalized at a signing ceremony in Lagos on Monday, culminates in the transformation of Deep Capital into a Critical Mineral Finance Corporation (CMFC). CMFC is a purpose-built financial institution focused on mobilizing long-term capital for the development of mines and critical minerals in Nigeria and across Africa.
Speaking at the event, Banklink Africa Director Francis Eken said the partnership is a fundamental shift in Deep Capital’s strategic direction, driven by growing global demand for green energy, digitalization and critical minerals needed for industrial production.
“Deep Capital is a strategic investment for us. What we are doing is refreshing and redirecting the business and positioning it for large-scale, long-term investments in mining, particularly critical minerals,” Eken said.
He noted that despite Africa’s vast mineral resources, mining remains severely underfunded due to its capital-intensive nature and the limited appetite of commercial banks.
“Mining is not the kind of sector that can be financed with short-term capital. CMFC was established to enable domestic and international investors to access the scale and structure of financing required for significant mining investments,” he added.
Mr Ekeng acknowledged the operational and regulatory challenges within the sector, but said the new organization was being completely recalibrated with a new board, a revamped management structure and onboarding of international partners with deep global mining and financial expertise.
Banklink Africa Group Chairman Israel Ovili also said in a speech that the deal is a strategic acquisition rather than a traditional partnership.
He said Deep Capital, which has been operating in the Nigerian capital market for over 20 years, needs a new growth trajectory to unlock shareholder value.
“We felt it was time for our company to take it to the next level and take advantage of the global opportunities in the minerals and metals sector, and that decision led to the acquisition of a majority stake in our company,” Mr. Ovily said.
He disclosed that the acquisition process will be completed after Deep Capital’s annual general meeting scheduled for March 10, after which the company will officially transition to Critical Mineral Finance Corporation.
According to him, CMFC is expected to play a pivotal role in mobilizing domestic and international capital into Africa’s critical mineral value chain.
“More than 30 percent of the minerals needed to power the next power era come from Africa, and a significant portion of rare earth minerals are based in Nigeria. This opportunity cannot be realized without intentional financial structure, and that is what CMFC represents.”
Sorape Hammond, partner at Banklink Africa Fund, said the investment reflects renewed confidence in Deep Capital and a deliberate strategic focus on mining finance.
He noted that while the world’s critical minerals market generates about $270 billion annually, Nigeria’s mining potential (estimated at about $700 billion) remains largely untapped due to lack of targeted financing.
“The goal is to build a financial institution that specializes in mining and critical minerals. Everything we use today, from mobile phones to electric cars, has elements of mining, but Africa remains underrepresented in the value chain,” Hammond said.
He added that recent policy reforms and the government’s renewed focus on mining provide a timely context for the partnership, with CMFC positioned to foster sustainable investment and value creation across Nigeria’s mining ecosystem.
