Lupaka Submits Request for Arbitration Claim Against the Republic of Peru
Lupaka Submits Request for Arbitration Claim
Against the Republic of Peru
VANCOUVER, BRITISH COLUMBIA, October 28, 2020 – Lupaka Gold Corp.
("Lupaka" or the “Company") (TSX-V: LPK, FRA: LQP) reports that it has completed the
next step in its international arbitration claim against the Republic of Peru. The Company
has now submitted a Request for Arbitration in accordance with Article 36 of the
Convention on the Settlement of Investment Disputes between States and Nationals of
Other States (“ICSID Convention”) and Article 824 of the Free Trade Agreement
between Canada and the Republic of Peru. This announcement is a follow up to
Lupaka’s earlier news releases on 16 December 2019 regarding the filing of a Notice of
Intent to Submit a Claim to Arbitration and on 4 August 2020 regarding Lupaka entering
into a Finance Agreement for its Arbitration Claim Under the Canada-Peru Free Trade
Agreement (“FTA”). The Request has been filed with ICSID in Washington D.C., USA.
The dispute arises out of Peru’s breaches of the FTA in relation to Lupaka’s investments
in Peru. More specifically, the dispute stems from the Republic of Peru’s actions, namely
the illegal acts of its subdivision, the Community of Parán, which illegally invaded
Lupaka’s project held through Invicta Mining Corp. (“IMC”) and set up a permanent
blockade to the site, as well as from the lack of support from the Peruvian police force,
prosecutors and central government officials to remove the illegal blockade and restore
Lupaka’s rights to its investment.
By September 2018, IMC had developed approximately 3,000 meters of underground
workings, secured community agreements from communities that own the superficial
lands within the project area, completed a 29-kilometer access road sufficient to handle
40-tonne ore trucks and completed numerous metallurgical tests ranging in size from a
few hundred to a few thousand tonnes. In September 2018, IMC requested that the final
inspection of the completed works take place in order to allow exploitation to begin.
In mid-October 2018, just before the final inspection was to take place, the neighboring
Community of Parán’s gunmen forced IMC’s personnel from the project’s area including
from its offices located at the camp and erected a blockade thereby preventing access to
the mine and camp. The blockade was erected on the road built by the mining company
and on the Community of Lacsanga’s recorded property. IMC has existing agreements
with the Community of Lacsanga. The Community of Parán’s blockade party were often
violent and did not hesitate to fire rifles and threaten Lacsanga’s community members
and IMC’s employees. Both Lacsanga and IMC requested that authorities assist to
remove the blockade and restore access to the mine. This assistance was not provided.
Funding for IMC’s development of the mine was provided through a gold loan. During
the blockade period, Lupaka was scheduled to have been processing material, creating
cashflow and paying down the loan. It was unable to do so because of the illegal
blockade. Ultimately, ten months later in August of 2019, with no apparent progress
being made in the conflict, the lender foreclosed on the loan and Lupaka lost its entire
investment.
Lupaka’s loss of IMC and the mine was a consequence of Peru’s acts and omissions.
Lupaka has therefore commenced arbitration proceedings against the Republic of Peru
seeking compensation in an amount in excess of USD 100 million, to be further
quantified during the course of the arbitration.
With respect to the arbitration proceedings, Lupaka is represented by the international
law firm, LALIVE, and has the financial backing of Bench Walk Advisors.
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 global
directories.
About LALIVE
LALIVE is an international law firm with offices in Geneva, Zurich and London, that
specializes in international dispute resolution. The firm has extensive experience in
international investment arbitration in the mining sector, amongst others, and is currently
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