Lupaka Gold (TSX-V: LPK) has received approximately $49.4 million from Peru under a negotiated settlement of its international arbitration award, marking a significant step toward resolving a long-running dispute stemming from protests that blocked access to the company's Invicta project in 2018. The outcome is notable because enforcement of international arbitration awards against sovereign states is frequently protracted, and voluntary partial payment by a government is relatively uncommon in mining investor disputes.

The payment represents 70% of an award granted by the International Centre for Settlement of Investment Disputes (ICSID), which ruled in 2025 that Peru was liable for failing to prevent protests that shut down the Invicta project. Peru, one of the world's largest gold producers and a major destination for Canadian mining investment, has committed to paying the remaining roughly $21.2 million by December 31, with additional interest accruing if the deadline is missed.

In exchange, Lupaka agreed to seek the suspension of enforcement proceedings and attachment orders against Peru and to refrain from pursuing further enforcement actions across multiple jurisdictions while awaiting the balance.

Legal Counsel Responds

"We are delighted to have secured a full victory for Lupaka, not only in the ICSID arbitration but also in obtaining subsequent payment from Peru," said Marc Veit, a partner with Lupaka's Switzerland-based legal counsel Lalive, in a release on Thursday. "Winning an award is only part of the process; securing payment is what ultimately delivers value for clients. This case is a prime example that mining investors can get full legal and financial relief from States with the right strategy and counsel."

The receipt of funds comes just over a year after the tribunal's ruling, which Lalive noted was the first instance in Latin America where the actions of a local community were deemed attributable to the state under international law. That precedent could be relevant for other mining companies operating in the region, where community conflicts disrupting operations are a recurring challenge and where investors have limited recourse when host governments are unable or unwilling to restore access.

CEO Gordon Ellis added: "This has been a long haul and we are pleased that it is almost over and with a positive outcome. We will get the contingent value rights (CVR Holder) payments out as soon as possible now and again upon our receipt of the second Peru payment. We can now move forward and focus on pursuing potential resource development projects."

Distribution Plan

Lupaka stated that its first priority is repaying Bench Walk Advisors, which financed the arbitration, along with the firm's contingent profit share. The company then expects to make its first eligible CVR distribution within 30 days.

Under the June 2022 CVR trust indenture, the first payment will reflect the remaining proceeds after deducting Bench Walk's entitlement, legal and professional fees, accounts payable and accrued liabilities outstanding as of the June 30, 2025 award date, withholding and distribution taxes, the costs of making the two CVR distributions, and up to C$8 million retained for working capital and corporate purposes.

The second CVR distribution will follow receipt of the final payment from Peru. Since most deductions will have been covered in the first distribution, the company expects the second payment to be larger.

Background of the Dispute

The ICSID ruled last year that Peru had breached its obligations to the Canadian miner by failing to prevent community protests that blocked access to the Invicta gold project in 2018. The mine, located approximately 120 km north of Lima, was forced to close after road blockades halted operations.

Lupaka launched the dispute in late 2019, alleging that the state had supported the protests. Prior to the settlement agreement, Lupaka had warned it was pursuing overseas Peruvian assets for potential seizure to enforce the award, which had grown to approximately $67 million with accrued interest.