Strategic Expansion In Africa’s Gold Arena
Cyprus-based Mithril Royalties announced a development related to Ethiopia’s Tulu Kapi gold project after KEFI Gold and Copper finalized a mining services contract with BCM Group valued at more than $400 million. The agreement covers the first nine years of mining operations and represents the largest operational contract signed for the project to date.
Landmark Contract With BCM Group
Announced on June 22, 2026, the contract forms part of the project’s preparations for production. Mithril’s involvement comes through a $10 million gold royalty linked to Tulu Kapi Gold Mines, KEFI’s Ethiopian subsidiary. As a result, royalty payments will be tied directly to the performance of the project rather than the wider corporate group.
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Resilient Royalty Structure And Risk Profile
According to the company, the royalty carries commercial terms comparable to those of a $20 million royalty held by Chancery Royalty, despite representing a smaller nominal gold exposure.
Disclosures published by KEFI Gold and Copper on the London Stock Exchange state that royalty payments will be made from distributable cash alongside shareholder distributions. The company also said the arrangement does not create additional default risk for lenders or shareholders during the development phase.
Looking Ahead: Production Forecast And Market Impact
Tulu Kapi contains reserves of 1.05 million ounces of gold and total resources of 1.72 million ounces. Annual production is projected at approximately 175,000 ounces during the early and mid-life stages of the mine.
Commenting on the transaction, Mithril Royalties founder and CEO John Costaschuk said the royalty structure provides exposure to producing assets as projects move from development into operation.
