First CVR Payment
Lupaka receives its first $0.109 cash value right payout from the $69 million Peru arbitration win.
Lupaka Gold Corp. has announced its first Contingent Value Right (CVR) payment of USD 0.109 per CVR. The distribution applies to 160,277,702 outstanding rights, generating approximately USD 17.47 million in net proceeds. These funds originate from the receipt of 70% of the ICSID arbitration award, valued at USD 46.2 million, along with USD 3.2 million in reimbursed costs from the Peruvian government.
Deductions from the gross proceeds include repayment to litigation financier Bench Walk Advisors, legal and professional fees, accounts payable, withholding taxes, and USD 8 million retained for working capital. A second CVR payment is expected later in 2026, contingent upon the receipt of the remaining 30% of the award, which is approximately USD 21.2 million and contractually due by December 31, 2026. Payments will be processed via Computershare within ten business days, subject to a 25% withholding tax for non-resident holders.
Lupaka Gold Corp. (LPK) announced a payment that serves as a direct follow-up to its August 4, 2026 update regarding the receipt of the first 70% tranche. The market was already aware of the impending distribution. The payment resolves the severe working capital deficit reported at June 30, 2026, where cash stood at only USD 44,847 against USD 1.7M in liabilities.
While positive, the cash distribution is heavily weighted toward covering litigation financing costs and accrued liabilities before reaching CVR holders. The net amount per CVR ($0.109) is modest relative to the total award value, reflecting the priority given to Bench Walk Advisors and legal fees. The retention of USD 8 million for corporate purposes signals management's intent to fund future exploration rather than distribute all liquidity immediately.
Lupaka Gold Corp. is a Canadian-based exploration company focused on creating shareholder value through mining asset identification and development. The company's primary catalyst has been the ICSID arbitration award against Peru for the unlawful expropriation of its Invicta Gold Project. Post-award, management is pivoting to actively pursue new gold exploration opportunities, specifically advancing the Idol City and Pine Creek properties in Oregon, USA.