Banklink Africa Private Equities Limited has signed a memorandum of understanding with Deap Capital Management & Trust Plc and RGM Materials Solutions Ltd to reposition Deap Capital as a specialist financial institution for the mining and critical minerals sector.
The statement said both parties formalized the agreement at a signing ceremony held in Lagos recently. The companies noted that the memorandum of understanding sets the stage for Deep Capital’s transformation into Critical Mineral Finance Corporation. This dedicated financial institution mobilizes long-term financing for mines and critical mineral developments in Nigeria and across Africa.
Francis Eken, Director of Banklink Africa, said the partnership is a fundamental shift in Deep Capital’s strategic direction in response to the growing global demand for green energy, digitalization and critical minerals needed for industrial production.
“Deap Capital is a strategic investment for us.
What we are doing is refreshing and redirecting the business and positioning it for long-term, large-scale investment in mining, particularly critical minerals,” Eken said.
He noted that Africa’s vast mineral resources do not translate into sufficient financing for the sector due to their capital-intensive nature and limited demand from commercial banks.
Mr Ekeng further added: “Mining is not the kind of sector that can be financed with short-term capital. CMFC is being created to enable domestic and international investors to access the scale and structure of capital required for significant mining investments.”
He acknowledged the operational and regulatory challenges in the sector, but said the new company would operate under a completely recalibrated structure, with a new board, a revamped management team and international partners with deep global mining and financial expertise.
Dr. Israel Ovili, Chairman of Banklink Africa Group, also described the transaction as a strategic acquisition rather than a traditional partnership. He said Deep Capital, which has been active in the Nigerian capital market for over 20 years, needs a new growth trajectory to unlock shareholder value.
Mr. Ovili said, “We felt it was time for our company to move to the next level and take advantage of the global opportunities in the minerals and metals sector. That decision led to the acquisition of a majority stake in our company.”
He disclosed that the acquisition process will conclude after Deep Capital’s annual general meeting scheduled for March 10, after which the company will officially transition to Critical Mineral Finance Corporation.
The Chairman of Banklink Africa Group noted that CMFC will play a pivotal role in mobilizing domestic and international capital across Africa’s critical minerals 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,” Owili said.
Solape 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 global critical minerals market generates about $270 billion annually, Nigeria’s mining potential, estimated at $700 billion, remains largely untapped due to the 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 backdrop for the partnership, positioning CMFC to foster sustainable investment and value creation across Nigeria’s mining ecosystem.
