Cyprus-based Mithril Royalties announced on Monday that it has strengthened its exposure to one of Africa’s most closely watched gold developments after a major new construction milestone at the Tulu Kapi project in Ethiopia, where KEFI Gold and Copper has signed a mining services contract worth more than $400 million.

The agreement, announced on June 22, 2026, and signed with the BCM Group, covers the first nine years of mining operations and represents the largest operational contract to date for the project, signalling a further step towards full-scale production.

The development carries direct implications for Mithril Royalties, which is headquartered in Cyprus and holds a $10 million gold royalty over future output from Tulu Kapi, giving it structured exposure to revenues generated by the mine once production begins.

According to disclosures made by KEFI Gold and Copper to the London Stock Exchange (LSE), Mithril’s royalty was secured at the level of KEFI’s Ethiopian subsidiary, Tulu Kapi Gold Mines, effectively linking the Cypriot company’s position directly to the operating asset rather than the parent group.

The arrangement grants Mithril a contractual right to a share of future gold production, positioning it to benefit as the project transitions from development into production.

Significantly, 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, a detail the company has highlighted as reinforcing the strength of its entry point.

The royalty sits at a risk profile comparable to equity, the company said, with payments expected to be made from distributable cash alongside shareholder distributions at Tulu Kapi Gold Mines.

On their part, KEFI stated that the structure does not add default risk for lenders or shareholders, an important feature for a project still in development.

“For Mithril, this means direct exposure to the project’s revenues,” the company stated in the announcement.

“Every step that takes risk out of Tulu Kapi strengthens the value of the position it already holds,” it added.

Moreover, the firm explained that Tulu Kapi itself is widely regarded as one of Africa’s most significant undeveloped gold deposits currently progressing towards production.

It stated that the project hosts 1.05 million ounces in reserves and 1.72 million ounces in total resources, placing it among the more substantial gold developments in the region.

Once operational, it continued, annual production is forecast to reach approximately 175,000 ounces during the early and mid-life stages of the mine, providing a stable production profile that underpins the royalty’s long-term value proposition.

“With the royalty model, you gain exposure to good assets at exactly the point where their risk falls and they move towards production,” said John Costaschuk, founder and CEO of Mithril Royalties.

“The progress at Tulu Kapi confirms that, and shows that Europe, with Cyprus at the front, can support a serious precious-metals financing platform,” he added.