Canadian miner Lupaka Gold (TSXV: LPK) has warned that it may pursue Peruvian state-owned assets abroad unless the South American nation honours a $67mn arbitration award, its chairman said.
The dispute stems from the 2018 forced closure of Lupaka’s Invicta gold project, located 120km north of Lima, following community blockades. Lupaka alleges that the Peruvian state failed to prevent the protests, prompting the company to launch an international arbitration in late 2019.
In June 2025, the International Centre for Settlement of Investment Disputes (ICSID) ruled in Lupaka’s favour, ordering Peru to pay $65mn. Interest has since pushed the claim to $67mn, but the payment remains outstanding.
Chairman Gordon Ellis told Bloomberg the company has begun identifying potential foreign assets for seizure, including Peru’s state petroleum firm Petroperu. “They have significant debts and regular cash flows that could satisfy a claim,” he said. Other targets under consideration include ships, real estate and sovereign bond payments, provided legal mechanisms allow action outside Peru.
Prior to the conflict, Lupaka had completed 3,000 metres of underground workings, secured agreements with the Lacsanga community, and built a 29km access road capable of supporting 40-tonne ore trucks. The Invicta project was projected to yield 185,000oz of gold equivalent over six years.
The company’s stock has more than tripled since the ICSID ruling, trading at roughly C$0.25 per share and giving a market capitalisation of C$5.7mn ($4.1mn).
Lupaka’s action highlights wider concerns over Peru’s treatment of foreign investors. In late 2025, a U.S. federal court found the country in default over a separate $91mn arbitration linked to an airport contractor. According to the Fraser Institute, Peru ranks behind regional peers such as Argentina and Chile for mining investment attractiveness, partly due to regulatory uncertainties and social conflict risks.
For Lupaka, pursuing state assets abroad is a strategic step to enforce its ICSID award, signalling to investors that Peru’s failure to comply with rulings can have tangible financial consequences.
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