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Lupaka to seek arbitration if talks over blockaded Peruvian gold project fail

Toronto-based Lupaka Gold Corp. notified the Peruvian Minister of Economy and Finance of its intent to file an arbitration case amid an illegal blockade at the Invicta gold project.

Operations at Invicta have been suspended since October 2018 after the local Parán community prevented access to the site while demanding exclusive rights to the mine's social and economic benefits.

The blockade was removed in early March but resumed a few weeks later after negotiations broke down.

"Despite numerous requests for assistance from the police force and Peruvian government officials, the requested assistance was not provided and the illegal blockade continues to this day," Lupaka said Dec. 16.

The filing of the notice of intent kicks off a six-month period where the company and the Peruvian government will try to amicably settle the dispute.

If no agreement is reached, Lupaka can initiate arbitration proceedings against Peru in accordance with the 2009 free trade agreement between Canada and Peru.

Lupaka Gold said it retained law firm LALIVE to advise in case the arbitration pushes through.