Nicosia, Cyprus. Cyprus-based Mithril Royalties said a major construction milestone at the Tulu Kapi gold project in Ethiopia has strengthened its exposure to the development, after KEFI Gold and Copper signed a mining services contract worth more than $400 million with BCM Group.
The agreement, announced on June 22, 2026, covers the first nine years of mining operations and is the largest operational contract signed for the project to date, according to the company.
Contract and project development
KEFI Gold and Copper said the contract with BCM Group marks a further step toward full-scale production at the Tulu Kapi project, one of Africa’s closely watched gold developments.
The company said the mining services agreement covers the first nine years of operations and represents a major new construction milestone for the Ethiopian project.
Mithril’s royalty position
Mithril Royalties holds a $10 million gold royalty over future output from Tulu Kapi, giving it exposure to revenues generated by the mine once production begins.
According to disclosures by KEFI Gold and Copper to the London Stock Exchange, Mithril’s royalty was secured at the level of KEFI’s Ethiopian subsidiary, Tulu Kapi Gold Mines, linking the Cypriot company’s position directly to the operating asset rather than the parent group.
The arrangement gives Mithril a contractual right to a share of future gold production as the project moves from development into production.
Commercial terms and risk profile
Mithril said the royalty was structured on the same commercial terms as a $20 million royalty held by Chancery Royalty, despite representing half the nominal value of gold exposure.
The company said this supported the strength of its entry point.
Mithril said the royalty carries a risk profile comparable to equity, with payments expected to be made from distributable cash alongside shareholder distributions at Tulu Kapi Gold Mines.
KEFI said the structure does not add default risk for lenders or shareholders, which it described as an important feature for a project still in development.
“For Mithril, this means direct exposure to the project’s revenues,” the company said in the announcement.
“Every step that takes risk out of Tulu Kapi strengthens the value of the position it already holds,” it added.