Vancouver, British Columbia--(Newsfile Corp. - August 9, 2017) - Lupaka Gold Corp (TSXV: LPK) (FSE: LQP) ("Lupaka Gold" or the "Company") is pleased to announce that the Company has received Tranche 1 of the US$7,000,000 PLI Financing Agreement announced in the Company's news release of May 16, 2017. Pursuant to a recent amendment of the PLI Financing Agreement, the PLI financing proceeds will be provided by PLI in three tranches: Tranche 1 - US$1,600,000 (received, net of related fees); Tranche 2 - US$2,000,000; and Tranche 3 - US$2,500,000.
With the receipt of Tranche 1, the Company has completed its initial Invicta community payment obligations, has bought back the Franco Nevada royalties tied to Invicta, and paid the required PLI Financing Agreement-related finders' fees.
Tranche 2 of the PLI Financing
Receipt of Tranche 2 will take place once the Lacsanga Community Agreement is registered in the Public Registry system in Peru, which is currently in progress.
Tranche 3 of the PLI Financing
With the above-referenced royalty buy-back, Franco Nevada will be terminating its related mortgage security registration against the Invicta concessions, which will allow PLI to obtain a first charge on the Invicta concessions. The perfection of PLI's first charge on the Invicta property and the Company raising US$2,000,000 are the only significant conditions precedent remaining to be completed in order to receive Tranche 3.
"We are pleased to be able to get the Franco Nevada royalty buy-back out of the way and meet our community agreement obligations", stated Gordon Ellis, CEO. "This will speed up the release of Tranche 3 and assist the Invicta Project to achieve its objective of production before the end of 2017. We have all of the necessary development, infrastructure and mine upgrade contracts in place, and we look forward to commencing such work as soon as possible."
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.
Qualified Person
The technical information in this document has been reviewed and approved by Julio Castañeda Mondragon, MAIG, the President of Lupaka Gold Peru S.A.C., a Peruvian subsidiary of the Company, and a Qualified Person as defined by National Instrument 43-101. Mr. Castañeda has verified the scientific and technical information, including sampling, analytical and test data underlying the information or opinions contained in this news release.
