As transition to CMFC underway

By Peter Egwuatu

The transition of DEAP Capital Management & Trust (DEAPCAP) Plc into Critical Minerals Financing Corporation (CMFC) Plc has received a major boost, following an additional N2 billion capital injection by the company’s new core investor, Banklink Africa Private Equities Limited.

The latest funding brings total capital injected so far to N3 billion, while the second tranche under the parties’ N6 billion capital injection agreement is expected this month. Under the capitalisation programme, Banklink Africa had committed to providing the funds in three tranches as part of the takeover agreement.

At the company’s Annual General Meeting (AGM) held last month in Ikeja, Lagos, shareholders unanimously approved the company’s transformation into CMFC Plc, envisioned as Africa’s premier private-sector minerals finance group.

The shareholders also approved resolutions to change the company’s name, restructure operations, raise additional capital globally, implement enterprise transformation initiatives, and empower the board to enter into domestic and international alliances.

In a regulatory filing with the Nigerian Exchange (NGX), the board said the company is now transitioning fully to CMFC in line with shareholders’ resolutions.

Chairman of DEAPCAP, Lamon Rutten, said that after completion of the ongoing approval process, CMFC would focus on financing, structuring, and supporting mining and mineral processing opportunities in Nigeria and across Africa.

He said the company would target opportunities across the minerals value chain, especially in lithium, copper, rare earths, tin, zinc, and other energy transition minerals.

According to Rutten, CMFC would operate at the intersection of mining project finance, structured credit, commodity trading, capital market issuance, and ESG-aligned investment governance.

Rutten said CMFC aligns with Nigeria’s economic diversification agenda, noting that by deepening value addition in critical minerals, the country can drive growth, industrialisation, and shared prosperity.

Commenting as well, Chief Financial Officer of Banklink Africa, Mr. Joshua Adesoji, said the firm remains committed to the long-term sustainability of CMFC and expects to complete the remaining capital injection within the next 30 days.

He added that upon completion of the transformation, CMFC would deploy its resources and expertise toward developing a pipeline of transactions in Nigeria and subsequently across Africa.

The company has also attracted interest from high-net-worth investors in Saudi Arabia, the United Arab Emirates, and Europe.

Speaking, Dr Israel Ovirih, a leading Nigerian specialized finance expert and newly appointed director at Deap Capital said: “ The firm remains committed to the long-term sustainability of CMFC and expects to complete the remaining capital injection within the next 30 days.

He added: “With its unique model combining NGX retail participation with international institutional capital, CMFC’s strong global mining finance leadership with built-in capital markets issuance platform is the perfect ideal to support all cadres of mining businesses.”