Africa Exploration Fund
CRM
Information
Company Description
The Africa Exploration Fund (Critical Minerals Fund) under Pangaea Securities Ltd aims to raise capital for early-stage critical mineral projects in the SADC region. The Fund addresses exploration financing challenges faced by African concession holders and invests in projects at advanced exploration or near-production stages. It supports African ownership, ESG-compliant mining, and local value creation.
Team
The Fund is managed by a team of experienced mining investment professionals with extensive expertise in project finance, capital markets, and resource development. Led by Director Tshepo Magagane, the team leverages decades of combined experience in mining investment, structuring, and management through the Pangaea Group, a Zambian investment firm active for over 30 years.
Countries of Operation
Zambia, South Africa
Ownership of Company
Local Company - 100% Zambian-owned
Number of years since incorporated
30 Years
Stage
Early Venture
Annual Revenue (in EUR)
EUR 1,000,000 - 50,000,000
Number of employees
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Project Pitch
The Africa Exploration Fund (AEF) seeks to unlock the early-stage mining potential in Sub-Saharan Africa, addressing the funding gap that constrains local exploration and project advancement.
Structured as a Reserved Alternative Investment Fund (RAIF) with top-tier governance (including potential World Bank participation), the Fund targets €10–15 million for proof-of-concept and aims to mobilize €50–100 million in later phases.
The Fund’s investment strategy includes:
- Exploration Alliance Agreement with a $100 million allocation for mineral exploration in Zambia, Botswana, and Angola.
- Project Generation Phase: up to $20 million over 4 years for regional exploration and defining project targets.
- Earn-In Phase: up to 75% equity by sole funding $80 million over 7 years to develop selected projects.
- Joint Venture Phase: shared investment and optional 2% net smelter royalty conversion below 10% equity.
The Fund’s phased approach—beginning with seed capital for pre-MRE (Mineral Resource Estimate) work—ensures risk mitigation and investor confidence, creating a pipeline of bankable African critical mineral projects aligned with ESG and SDG principles.
Total Project Cost (in EUR)
EUR 15,000,000
Financing needs (in EUR)
EUR 10,000,000
Type of financing needed
Equity; Grant
Planned allocation of fundraising capital
Greenfield (new activity for the company)