Payment 1”) to the holders of the 160,277,702 contingent value rights (the “CVR Holders”). First CVR Holder Payment and Timing
FIRST CVR PAYMENT
(August 17, 2026)
VANCOUVER, BRITISH COLUMBIA – August 17, 2026 – Lupaka Gold Corp.
("Lupaka" or the “Company") (TSX-V: LPK, FRA: LQP) advises that the Company’s
directors have declared a first Contingent Value Right (“CVR”) payment (“CVR
Payment 1”) to the holders of the 160,277,702 contingent value rights (the “CVR
Holders”).
First CVR Holder Payment and Timing
The Company’s directors have declared a first CVR Payment of USD0.109 per
CVR, to be paid via Computershare Trust Company of Canada (“Computershare”)
within the next ten (10) business days.
This payment will be made directly via cheque to Registered CVR Holders by
Computershare, and in cash to Non-Registered CVR Holders via the intermediary
securities framework, typically referred to as the indirect holding system. Securities
intermediaries include central depositories (such as CDS, CEDE and DTS) and
financial institutions (including broker-dealers, banks and trust companies).
As noted on the Company’s website (see https://lupakagold.com/arbitration/), CVR
Payments made to non-resident Registered CVR Holders will be subject to a 25%
withholding tax, unless the related CVR Holder is a tax resident of a sovereign
country having a valid tax treaty with Canada and has provided the Company with a
completed Form NR301 prior to the total CVR Holder payments being forwarded to
Computershare.
Determination of the CVR Payment 1 Amount
As announced on August 4, 2026, the Company accepted a 2-step payment
proposal from the Peru Government, resulting in the Company receiving 70% of the
Base Award, equal to USD46,221,474, and 70% of the reimbursed Lupaka Costs,
equal to USD3,211,721 from the Ministry of Energy and Mines. Both amounts
include interest accrued to June 30, 2026.
As set out in the June 2022 Contingent Value Rights Trust Indenture Agreement,
the first CVR Payment amount has been determined by the Company's directors as
follows:
Gross Base Award proceeds received: USD46,221,474
Less: amounts payable to the Company’s arbitration financier (Bench Walk
Advisors); legal and professional fees; accounts payables and accrued liabilities as
of the Award date (June 30, 2025); the estimated costs of the first CVR distribution;
withholding and distribution tax costs; and C$8 million retained by the Company for
working capital and other corporate purposes.
Net Award proceeds available for distribution: USD17,470,269
Number of CVR’s outstanding: 160,277,702
CVR Payment per CVR: USD0.109
Second CVR Payment
As previously announced, the remaining 30% of the Base Award, equal to
USD19,809,203, and 30% of the Lupaka Costs, equal to USD1,376,452, will be
paid by the Peru Government’s Ministry of the Interior (“MOI”) by December 31,
2026. This amount includes interest accrued to June 30, 2026. Once the MOI
payment is received, the Company will immediately undertake the payment of a
second CVR Payment, that is expected to be greater than CVR Payment 1.
Gordon Ellis (CEO) commented "We are pleased with having the ability to pay the
first CVR Payment very soon now, and again upon our receipt of the second Peru
payment. With a solid treasury in hand now, the Company is actively moving
forward on pursuing potential resource development projects”.
For ongoing updates and more details with respect to CVR Holder distributions,
please refer to the Company's website (www.lupakagold.com/arbitration/).
Lupaka was represented in the arbitration proceedings by the international law firm
LALIVE (www.lalive.law), with the financial backing of Bench Walk Advisors
(www.benchwalk.com).
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 a Canadian-based junior mining company focused on creating
shareholder value through the identification and development of mining assets.
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.
About Bench Walk Advisors
Bench Walk Advisors is a global litigation financier with over USD 250 million 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.
FOR FURTHER INFORMATION PLEASE CONTACT:
Gordon Ellis, C.E.O.
Tel: (604) 985-3147