Banklink Africa, Deap Capital sign MoU to unveil critical mineral finance corporation

Banklink Africa Private Equities Limited has signed a strategic Memorandum of Understanding (MoU) with Deap Capital Management & Trust Plc and RGM Material Solutions Ltd to reposition Deap Capital as a specialised financing institution for mining and critical minerals sector.

The agreement, formalised at a signing ceremony in Lagos on Monday, will culminate in the transformation of Deap Capital into the Critical Mineral Finance Corporation (CMFC), a purpose-built financial institution focused on mobilising long-term capital for mining and critical minerals development in Nigeria and across Africa.

Speaking at the event, Francis Ekeng, Director at Banklink Africa, described the partnership as a fundamental shift in Deap Capital’s strategic direction, driven by the growing global demand for critical minerals required for green energy, digitisation and industrial manufacturing.

“Deap Capital is a strategic investment for us. What we are doing is revamping the business, changing its direction and positioning it for heavy, long-term investments in mining, particularly critical minerals,” Ekeng said.

He noted that despite Africa’s vast mineral endowment, mining remains significantly underfunded due to its capital-intensive nature and the limited appetite of commercial banks.

“Mining is not the kind of sector you can finance with short-term capital. CMFC is being created to enable local and international investors to access the scale and structure of funding required for critical mining investments,” he added.

Ekeng acknowledged the operational and regulatory challenges within the sector but said the new entity was being fully recalibrated, with a new board, revamped management structure and the onboarding of international partners with deep global mining and finance expertise.

Also speaking, Israel Ovirih, Chairman of Banklink Africa Group, described the transaction as a strategic acquisition rather than a conventional partnership.

He said Deap Capital, which has operated in Nigeria’s capital market for over two decades, required a new growth trajectory to unlock shareholder value.

“We felt the time had come for the company to move to the next level and take advantage of global opportunities in the minerals and metals space. That decision led to the acquisition of majority shares in the company,” Ovirie said.

He disclosed that the acquisition process would be concluded after Deap Capital’s Annual General Meeting scheduled for March 10, after which the company would formally transition to the Critical Mineral Finance Corporation.

According to him, CMFC is expected to play a pivotal role in mobilising both domestic and international capital for Africa’s critical minerals value chain.

“Over 30 per cent of the minerals required to power the next electric age will come from Africa, and a significant proportion of rare earth minerals are domiciled in Nigeria. This opportunity cannot be realised without deliberate financial structures, and that is what CMFC represents,” he said.

A partner at Banklink Africa Fund, Solape Hammond, said the investment reflected renewed confidence in Deap Capital and a deliberate strategic focus on mining finance.

She noted that while the global critical minerals market generates approximately $270 billion annually, Nigeria’s mining potential—estimated at about $700 billion—remains largely untapped due to the absence of targeted financing.

“The goal is to build a financial institution dedicated to mining and critical minerals. Everything we use today—from mobile phones to electric vehicles—has a mining component, yet Africa remains underrepresented in the value chain,” Hammond said.

She added that recent policy reforms and renewed government focus on mining provided a timely backdrop for the partnership, positioning CMFC to catalyse sustainable investment and value creation across Nigeria’s mining ecosystem.