Lupaka Gold $67M award and Peru assets: risk lessons for mine project teams
Reviewed by Tom Sullivan

First reported on MINING.com
30 Second Briefing
Lupaka Gold is preparing to target overseas Peruvian state assets, including Petroperu, ships, real estate and sovereign bond debt payments, after a $65 million ICSID arbitration award over the halted Invicta gold project swelled to $67 million with interest and remains unpaid. The Invicta underground project, 120 km north of Lima, had 3,000 metres of workings, a 29 km road for 40-tonne ore trucks and a planned output of 185,000 oz gold equivalent over six years before 2018 community blockades shut access. The case adds to Peru’s recent $91 million airport arbitration default and may further weaken its already middling Fraser Institute investment ranking.
Technical Brief
- ICSID award issued June 2025 for $65 million, now $67 million with accrued interest.
- Arbitration was initiated in late 2019, about a year after the 2018 access blockades.
- Underground development at Invicta reached 3,000 m of workings before operations were halted.
- Access logistics relied on a 29 km haul road engineered for 40-tonne ore trucks.
- Petroperu flagged as a primary enforcement target due to “massive debts” and frequent debt-service payments.
- Additional enforcement targets identified include state-owned ships, real estate and sovereign bond debt-service flows.
- Lupaka’s share price has more than tripled post-award, yet market capitalisation remains about C$5.7 million.
- Peru was separately found in default in a US federal court on a $91 million airport arbitration.
- Fraser Institute rankings place Peru behind San Juan (Argentina) and Chile on mining investment attractiveness.
Our Take
With Lupaka Gold’s market capitalisation of about US$4.1 million versus a US$67 million ICSID award, the enforcement route through potential seizures of Peruvian state assets is effectively the only path to monetising the claim at scale, which raises the stakes for Peru’s wider investment-risk profile in our Latin America coverage.
The Invicta project’s relatively modest six‑year life and existing 29 km access road capable of 40‑tonne trucks suggest it could be restarted or flipped more as a short‑cycle, brownfield-style asset if the arbitration cash is realised, rather than as a long‑life cornerstone mine.
Peru already features in several of our copper and gold price pieces as a supply‑risk hotspot; a high‑profile non‑payment case involving Petroperu and Lupaka Gold will likely be noted by other Canadian and US juniors assessing project pipeline options in Peru versus Argentina or Chile.
Prepared by collating external sources, AI-assisted tools, and Geomechanics.io’s proprietary mining database, then reviewed for technical accuracy & edited by our geotechnical team.
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