Lupaka Secures Financing for Its Arbitration Claim Under The Canada-Peru Free Trade Agreement
Lupaka Secures Financing for Its Arbitration Claim
Under The Canada-Peru Free Trade Agreement
VANCOUVER, BRITISH COLUMBIA, August 4, 2020 – Lupaka Gold Corp. ("Lupaka
Gold" or the “Company") (TSX-V: LPK, FRA: LQP) reports that it has entered into an
Arbitration Funding Agreement with Bench Walk Advisors (“BWA”) to support the
Company’s arbitration claim against the Republic of Peru under the 2009 Canada-Peru
Free Trade Agreement (“FTA”; see also the Company’s news release of 16 December
2019).
The Agreement allows for up to USD$4.1 million to support the arbitration and related
costs. All monies to be advanced by BWA are non-recourse and are only repayable
upon completion of a successful claim where monies are recovered. As such, the
financing is non-dilutive to current Lupaka shareholders. Precise terms of the Arbitration
Funding Agreement (other than those set out herein) are confidential.
The Company’s 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. In October
2018, the Community of Parán erected an illegal blockade (the “Parán Blockade”) which
prevented any access by company advisors and staff to the Invicta Gold Project. The
Company had begun its planned shipments from the mine to third-party processing
plants in the third quarter of 2018 but had to suspend such shipments as a result of the
illegal Parán Blockade. Without access to the Invicta Gold Project site, Lupaka Gold
was unable to continue mining, shipping and processing the mined material. Despite
numerous requests for assistance from the police force and local, state and federal
Peruvian government officials, the requested assistance was not provided and the illegal
blockade continued. Without the ability to ship and sell its product, Lupaka was unable to
service the loan acquired to complete development and the start of commercial
production, the lender foreclosed on the loan and Lupaka ultimately lost the project.
On 12 December 2019 Lupaka 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 FTA. 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 initiated a six-month consultation period
between the parties during which time they are to attempt to amicably settle the
dispute. Meetings between Peruvian government representatives and the Company and
its arbitration lawyers, LALIVE, have taken place during this six month period but no
resolution has been presented. The Company is now in a position to initiate international
arbitration proceedings against Peru in accordance with the FTA.
Neither the TSX Venture Exchange nor its Regulation Service Provider (as the
term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy of this news release.
About Lupaka Gold
Lupaka is an active Canadian -based company focused on creating shareholder value
through identification and development of mining assets.
About Bench Walk Advisors
Bench Walk Advisors is a global litigation funder with over USD 250m of capital deployed
across in excess of 100 commercial cases. Bench Walk and its principals have
consistently been ranked as leading lawyers and litigation funders in various gl obal
directories.
About LALIVE
LALIVE is an international law firm with offices in Geneva, Zurich and London, that
specializes in international arbitration. The firm has extensive experience in international
investment arbitration concerning mining and other natural resources and is representing
investors and States as counsel worldwide.
FOR FURTHER INFORMATION PLEASE CONTACT:
Gordon Ellis, C.E.O.
Tel: (604) 985-3147 (ext 2)
or visit the Company’s profile at www.sedar.com