Lycopodium Gets A$118 Mln ESLH Contract For Tulu Kapi Gold Project In Ethiopia

(RTTNews) - Lycopodium Ltd. (LYL.AX), an integrated engineering, project, construction and asset management, announced that it has received the Engineering, Supply and Labour Hire or ESLH contract for the development of KEFI Gold and Copper's Tulu Kapi Gold Project in Ethiopia. The full contract is valued at around A$118 million within KEFI's total project budget.

The company said the delivery of services have already commenced for full gold production, which is anticipated in mid-2028.

Lycopodium's early involvement in the project included delivery of the original Feasibility Study, as well as a Feasibility Study update in 2024.

The ESLH scope includes the full suite of engineering, procurement, project services and project management. It also includes the supply of equipment and materials for the 2 Mtpa greenfield gold plant and associated non-process infrastructure.

KEFI has issued a limited notice to proceed for approximately A$30.1 million. The execution of the final contract, already fully agreed, is anticipated with the closure of the full package of documentation with the broader project syndicate members in the next few weeks.

Lycopodium's Managing Director and CEO, Peter De Leo, said, "Tulu Kapi represents one of Ethiopia's first modern, industrial-scale gold mines that will be a pivotal growth driver for the nation, and we are extremely pleased to be given this opportunity to support its development."

The deposit will initially be mined using conventional open-pit mining methods, with the intent to add underground production as soon as practically possible.

In Australia, Lycopodium shares were trading at A$13.28, down 3 percent.