Lupaka Gold lands first $49M from Peru to settle mining dispute
Peru has paid most of arbitration award, clearing the way for the first contingent value rights distribution.
Lupaka Gold Corp. (TSX-V: LPK) has taken a significant step toward resolving its lengthy dispute with Peru, receiving approximately $49.4 million as part of a negotiated settlement of an international arbitration award. This payment constitutes 70% of the $67 million decision rendered by the International Centre for Settlement of Investment Disputes (ICSID) in 2025, which found Peru responsible for not preventing protests that halted Lupaka's Invicta gold project in 2018.
The remaining $21.2 million is expected to be paid by Peru by December 31, with interest accruing if the deadline is missed.
As part of the agreement, Lupaka has committed to suspending enforcement proceedings and attachment orders against Peru and refraining from initiating further actions in multiple jurisdictions while awaiting the remaining award amount. Company CEO Gordon Ellis expressed satisfaction with the positive outcome, stating that the company will promptly distribute the contingent value rights (CVR) payments upon receipt of Peru's second payment. Lupaka now intends to focus on exploring potential resource development projects.
The company's immediate priorities will be repaying Bench Walk Advisors, which funded the arbitration, along with the contingent profit share. Following this, Lupaka anticipates making its first eligible CVR distribution within 30 days, with the second payment expected shortly after Peru's final payment arrives. The distribution will take into account various deductions, including Bench Walk's entitlement, legal fees, accounts payable, and accrued liabilities as of the award date, withholding and distribution taxes, costs associated with the two CVR distributions, and up to C$8 million reserved for working capital and corporate purposes.
The dispute arose in late 2019 when Lupaka alleged that the Peruvian state had supported protests that blocked access to the Invicta gold project, forcing its closure in 2018. The International Centre for Settlement of Investment Disputes ruled in favor of Peru in June 2022, finding that the company's claims were unfounded.
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