Lupaka Gold soars after winning arbitration case against Peru

Lupaka Gold experienced a rapid surge in stock prices following the resolution of its international arbitration case against Peru. The Canadian mining company secured $65 million as the final award in its dispute with the Peruvian government after five years of litigations. This significant win propelled Lupaka Gold’s shares to hit a remarkable three-year high on Wednesday.

With shares rising from C$0.08 to C$0.24, the stock reached its peak value since June 2022. The market responded positively to the news, contributing to an impressive intraday gain of 167% and raising the market capitalization of the company to C$4.1 million. This achievement marks a pivotal moment for Lupaka Gold, emphasizing the successful outcome of its prolonged legal battle with the Peruvian authorities.

The conflict arose from a series of events starting with a protest by the Parán community in October 2018, blocking access to Lupaka’s Invicta gold project near Lima. These disruptive actions disrupted the project’s ore processing operations, hampering cash flow generation and eventually leading to Lupaka’s loss of the project in the subsequent year. Despite initial progress in the development of the Invicta project, including underground workings and community agreements, these setbacks severely impacted Lupaka Gold’s operations.

In response to allegations of government support for the protest, Lupaka initiated arbitration against Peru in November 2020. By citing a violation of the Canada-Peru Free Trade Agreement, the British Columbia-based company sought compensation exceeding $100 million. The arbitral tribunal upheld Lupaka Gold’s claims and ruled in favor of the company this week. The Peruvian government was directed to pay Lupaka an amount totaling $65 million in damages, signifying a significant victory for the Canadian miner.

Gordon Ellis, Lupaka’s CEO, acknowledged the receipt of the final award as a positive development in their arbitration proceedings against Peru. While expressing satisfaction with the ruling, Ellis highlighted that the immediate recovery of the awarded amounts remains uncertain. The company anticipates further steps to be taken to execute the tribunal’s decision and secure the compensation owed by the Peruvian government.

The resolution of Lupaka Gold’s arbitration case represents a substantial win for the company in its long-standing legal battle. The favorable ruling showcases the importance of upholding international agreements and protecting the rights of enterprises operating in foreign jurisdictions. Lupaka’s perseverance and commitment through the arbitration process have yielded significant results, underlining the potential for positive outcomes in complex legal disputes within the mining industry.