Vancouver, British Columbia--(Newsfile Corp. - July 24, 2017) - Lupaka Gold Corp (TSXV: LPK) (FSE: LQP) ("Lupaka Gold" or the "Company") is pleased to provide an update regarding progress with its Invicta project and the Pre-Paid Forward Gold Purchase Agreement with PLI Huaura Holdings LP ("PLI") previously announced on May 16, 2017 (the "PLI Financing").
Tranche 1 of the PLI Financing
With the execution of a community agreement with the Lacsanga Community (the "Lacsanga Agreement"), the Company has completed the final significant condition precedent necessary to close the $4.5 million first tranche of financing for the Invicta Gold project in Peru. The Lacsanga Agreement has a term of 10 years and provides the Company with, among other things, road access from the Invicta mine site to the local state highway thereby allowing Invicta to transport mineralized rock to milling operations. Receipt of Tranche 1 will take place once the Lacsanga Agreement is registered in the Public Registry system in Peru which may require a number of weeks to complete.
Tranche 2 of the PLI Financing
The Company recently registered the last of the revised Franco Nevada agreements which will facilitate the payout of Franco Nevada's royalty agreements on the Invicta property and allow PLI to obtain a first charge on the Invicta concessions. The perfection of PLI's first charge on the Invicta property is a condition precedent to the release of the second tranche of PLI's financing. The total funding for the Invicta project is US$9 million of which $2 million is to be raised by the Company and is a condition of release of the second tranche.
Gordon Ellis, President and CEO remarked "Securing agreements with local communities are major milestones in developing projects in rural areas of Peru. With the completion of the registration process, we anticipate an immediate start on access road development and upgrading of the current mine workings. All mining, transport and processing contracts are in place to begin full scale mining and processing operations within three months of receipt of funding. We thank Pandion Mine Finance (parent of PLI) for the patience that they have shown in continuing to work with us to satisfy all of the PLI Financing conditions precedent."
About Pandion Mine Finance
Pandion is the general partner of PLI Huarura Holdings LP and is a mining-focused investment firm backed by MKS PAMP Group and Ospraie Management, LLC that provides flexible financing solutions to developing mining companies.
