Lupaka Gold (TSX-V:LPK) has secured receipt of the full proceeds of an ICSID arbitration award, first announced in July 2026, with the assistance of international disputes firm LALIVE.
The award related to a dispute under the Free Trade Agreement (FTA) between Canada and Peru concerning Lupaka’s investment in the Invicta Gold Project in Peru’s Andean highlands.
In July 2025, the Tribunal unanimously found that Peru had breached its obligations under the FTA by failing to provide full protection and security, fair and equitable treatment, and by unlawfully expropriating Lupaka’s investment.
The Tribunal concluded that the actions of the Parán community, including the blockade, occupation, and eventual seizure of the Invicta mine, were attributable to the State of Peru. LALIVE reports that it also found that Peru’s national authorities failed to exercise due diligence in protecting the investment.
Speaking to Mining.com.au, LALIVE partner Jaime Gallego explains that after the invasion, Lupaka’s country manager contacted all relevant ministries and held meetings with all key personnel at the highest level possible to resolve the situation.
“Lupaka also continued to meet with the community that was blocking the project and acted reasonably at all times,” Gallego says.
“All of this was recorded through meeting minutes and letters. This was essential to defeat Peru’s numerous defences, including that the social licence had not been obtained and that the central administration was not obliged to intervene in the circumstances.”
Lupaka’s Tribunal award
The Tribunal awarded Lupaka compensation of US$40.4 million ($57.25 million) plus interest, 100% of the amount claimed, as well as full reimbursement of its legal costs and expenses, amounting to US$4.2 million. As at June 2026, the outstanding amount, including accrued interest, was more than US$70 million.
Following an international enforcement campaign orchestrated by LALIVE, Peru has agreed to fully compensate Lupaka. Peru has paid 70% of the amount, totalling US$49.4 million, as of 31 July, and has committed to pay the remaining 30%, totalling US$21.2 million, by the end of December 2026.
Gallego explains that an investment treaty award in favour of an investor contains an international obligation for a state to pay the investor.
“Despite this, some states are slow to pay or refuse to do so,” he adds.
“Enforcement actions can be harder against some states than others. At the time of enforcement, it is important to understand where a state may have assets that would not be covered by a defence of sovereign immunity and which jurisdictions will offer the most effective proceeding.
“This combination is difficult to achieve, but we managed to do so in this case.”
LALIVE sought out the best jurisdiction to enforce this award, including Luxembourg in particular, where attachment orders were obtained swiftly.
“The award recognises that the actions of the local community were actions of the state (i.e. the community was an organ). There had therefore been a direct expropriation,” Gallego tells this news service.
Largest compensation against Peru
The award is considered the largest compensation ever awarded against the Peruvian state in an investment dispute involving mining activities.
Gallego adds that this award is considered “groundbreaking”, in the sense that it found that the community — which was not a native or Indigenous community — was an organ of the state.
“This is a first and was a result of the manner in which Peru is structured legally, with ‘rural communities’ having extensive powers,” he says.
“The award has clearly created a lot of interest in Peru, not only in the mining industry, but also among other investors that have to deal with remote communities.”
Lupaka CEO Gordon Ellis adds that this has been a long haul and the company is “pleased” that it is almost over.
“We will get the contingent value rights 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,” Ellis says.
Lupaka Gold is focused on reviewing projects with an objective of accumulating a portfolio of properties that can be sold, optioned off, or developed internally. The company currently holds three properties in Southeast Oregon, US.
LALIVE is an international disputes law firm based in Switzerland, with offices in Geneva, Zurich, and London. The firm represents companies, states, and international organisations worldwide in international arbitration, litigation, and regulatory proceedings.
Write to Aaliyah Rogan at Mining.com.au
Images: Lupaka Gold
