**Cyprus-Based Firm Eyes Gains from African Gold Mine**
Mithril Royalties, a Cyprus-based company, has announced a significant expansion of its interests in the Tulu Kapi gold project located in Ethiopia. This comes after KEFI Gold and Copper, the operator of the project, signed a substantial mining services contract valued at over $400 million with the BCM Group. The contract, which was finalized on June 22, 2026, marks a critical milestone in the development of Tulu Kapi, positioning it closer to full-scale production.
The agreement with BCM Group covers the initial nine years of mining operations at Tulu Kapi, representing the largest operational contract associated with the project to date. This development is particularly relevant for Mithril Royalties, which holds a $10 million gold royalty over future production from the mine. This royalty arrangement provides Mithril with structured exposure to the revenues generated once the mine begins operations.
Mithril's royalty was secured through KEFI's Ethiopian subsidiary, Tulu Kapi Gold Mines, which links the Cypriot company's financial interest directly to the operational asset rather than the parent company. This structure allows Mithril to benefit from a share of future gold production, enhancing its financial position as the project transitions from the development phase to active production.
The company has highlighted that its royalty agreement was established on similar commercial terms as a $20 million royalty held by Chancery Royalty, although Mithril's royalty represents half the nominal value of gold exposure. This detail underscores the advantageous entry point for Mithril, reinforcing its position in the project. The risk profile of the royalty is comparable to equity, with expected payments to be made from distributable cash alongside shareholder distributions at Tulu Kapi Gold Mines.
KEFI Gold and Copper has assured that the structure of the royalty does not introduce additional default risks for lenders or shareholders, an important consideration for a project still in its development stages. Mithril's announcement emphasized that as Tulu Kapi progresses and mitigates risks, the value of its existing position will increase.
Tulu Kapi is recognized as one of Africa's most significant undeveloped gold deposits, currently advancing towards production. The project boasts an estimated 1.05 million ounces in reserves and a total resource of 1.72 million ounces, placing it among the more substantial gold developments in the region. Once operational, Tulu Kapi is expected to produce approximately 175,000 ounces of gold annually during its early and mid-life stages, providing a stable production profile that supports the long-term value of Mithril's royalty.
John Costaschuk, founder and CEO of Mithril Royalties, commented on the strategic advantage of their royalty model. "With the royalty model, you gain exposure to good assets at exactly the point where their risk falls and they move towards production," he stated. He further noted that the progress at Tulu Kapi demonstrates the potential for Cyprus, and Europe as a whole, to support a significant precious-metals financing platform.
As the Tulu Kapi project continues to develop, Mithril Royalties stands poised to benefit from the anticipated growth in gold production, solidifying its position in the African mining sector. The company's strategic investments reflect a broader trend of increasing interest in mining opportunities across the continent, particularly in the gold sector, which remains a key focus for investors looking for stable returns in the resource market.