Lycopodium (ASX:LYL) has been awarded the engineering, supply, and labour hire contract for the development of the Tulu Kapi Gold Project in Ethiopia.
Managed by KEFI Gold and Copper, the contract is valued at approximately $118 million.
This marks a progression for the greenfield site, with service delivery already underway and full gold production targeted for mid-2028.
Located in the Oromia Region of Western Ethiopia—roughly 360km west of Addis Ababa—Tulu Kapi is considered KEFI’s flagship asset.
Lycopodium’s involvement is long-standing, having previously delivered the original Feasibility Study and a subsequent 2024 update.
The new ESLH scope is comprehensive, covering engineering, procurement, project management, and the supply of essential equipment for the 2 Mtpa gold plant and its supporting infrastructure.
A limited notice to proceed, worth $30.1 million, has already been issued to initiate immediate works.
Final contract execution is expected within the coming weeks as the broader project syndicate closes its documentation.
Lycopodium Managing Director and CEO Peter De Leo described the project as one of Ethiopia's first modern, industrial-scale mines and a "pivotal growth driver for the nation."
At the time of reporting, Lycopodium's share price was $13.35.