Lupaka Files Notice of Intent to Submit a Claim to Arbitration Under Canada-Peru FTA
Lupaka Files Notice of Intent to Submit a Claim to Arbitration
Under Canada-Peru FTA
VANCOUVER, BRITISH COLUMBIA, December 16, 2019 – Lupaka Gold Corp. ("Lupaka
Gold" or the “Company") (TSX-V: LPK, FRA: LQP).
Lupaka Gold announces that on 12 December 2019 it delivered to the Peruvian Minister of Economy
and Finance a Notice of Intent to Submit a Claim to Arbitration (“Notice of Intent”) in accordance with
the 2009 Free Trade Agreement between Canada and Peru (the “FTA”) . Lupaka Gold has thereby
formally notified the Peruvian government that there exists an investment dispute between Lupaka
Gold and the Government.
The dispute arises out of certain acts and omissions of the Republic of Peru in breach of the FTA and
international law, relating to the Company’s investment in the Invicta gold mine project (the “Invicta
Gold Project”). The Invicta Gold Project is located in Huaura Province, approximately 120 kilometres
north of Lima. The Community of Parán erected an illegal blockade in October 2018 wherein it
prevented any access to the Invicta Gold Project site. The Company had begun its planned shipments
from the mine to processing plants in the third quarter of 2018 but had to suspend such shipments as
a result of the Community of Parán’s illegal blockade. Without access to the Invicta Gold Project site,
Lupaka Gold was unable to continue mining, shipping and processing the m ine’s mineraliz ation.
Despite numerous requests for assistance from the police force and Peruvian government officials,
the requested assistance was not provided and the illegal blockade continues to this day.
The Notice of Intent is necessary in order to preserve the Company’s rights to initiate arbitration
should a resolution with the Peruvian government not be reached. The filing of the Notice of Intent
initiates a six-month consultation period between the parties during which time they are to attempt
to amicably settle the dispute. If no amicable settlement is reached in that six -month period, the
Company may then initiate international arbitration proceedings against Peru in accordance with the
FTA.
Lupaka Gold confirms that it is taking all necessary actions to preserve its rights and protect its
investments in Peru. The Company’s desire is for both parties to reach a mutually acceptable
favourable solution. If such a solution is not achieved within the next six months, the Company
expects it will have no alternative but to pursue its claims before an international tribunal and seek
full compensation for damages the Company has suffered as a result of Peru’s acts and omissions.
Lupaka Gold has retained the international disputes law firm LALIVE to advise.
The Company will consider any other actions necessary to ensure its rights are preserved.
Neither the TSX Venture Exchange nor its Regulation Service Provider (as the term is
defined in the policies of t he TSX Venture Exchange) accepts responsibility for the
adequacy of this news release.
FOR FURTHER INFORMATION PLEASE CONTACT:
Gordon Ellis, C.E.O.
Tel: (604) 985-3147
or visit the Company’s profile at www.sedar.com