Lupaka Gold lands first $49M from Peru to settle mining dispute

AI desk brief

Lupaka Gold has received about $49.4 million from Peru, covering 70% of a negotiated settlement tied to its ICSID arbitration award over the 2018 shutdown of the Invicta gold project. Peru still owes roughly $21.2 million by Dec. 31, with interest due if it misses the deadline, while Lupaka has agreed to suspend enforcement actions and attachment proceedings in multiple jurisdictions.

The payment resolves a long-running dispute stemming from community protests and road blockades that forced the mine’s closure. Lupaka said the immediate priority is repaying Bench Walk Advisors, which financed the arbitration, before making its first eligible contingent value rights distribution within 30 days; the second distribution will follow receipt of the final Peru payment and is expected to be larger.

For the gold market, the direct price impact is limited, but the case is a reminder of sovereign and social-license risk across Andean gold assets. The settlement may improve Lupaka’s balance sheet and reopen optionality for future resource development, while highlighting how permitting/security disruptions can materially delay or destroy mine supply at the project level.