Lupaka Gold Corp This is a low floater with a small market cap (18 million), should start to get more attention now the the financing is secured.
INVICTA GOLD PROJECT RECEIVES COMMUNITY AGREEMENT
VANCOUVER, BRITISH COLUMBIA, July 24, 2017 - Lupaka Gold Corp ("Lupaka Gold" or the "Company") (TSXV:LPK, FRA:LQP) 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."
Neither the TSX Venture Exchange nor its Regulation Service Provider (as the term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy of this news release.
About Lupaka Gold
Lupaka Gold is a Peru-focused gold explorer and developer with geographic diversification and balance through its interest in asset-based resource projects spread across three regions of Peru.
Invicta Gold Project - the Company's 100%-owned Invicta Gold Project is a well-developed, poly-metallic gold-copper underground deposit located approximately 120 kilometres by road north of Lima. Management expects to commence production in 2017 by using third-party mining contractors and utilizing the adit and workings completed by previous owners.
Extraction of mineralized rock would be focused on accessing Invicta's Measured and Indicated resource estimates, which are comprised of:
Measured - 131,000 tonnes grading 6.65 grams per tonne ("g/t") gold equivalent for 28,000 contained ounces ("ozs") of gold, from: 18,000 ozs Au grading at 4.29 g/t, 133,000 ozs Ag grading at 31.71 g/t, 2,119k lbs Cu grading at 0.73%, 1,110k lbs Pb grading at 0.39% and 1,105k lbs of Zn grading at 0.38%.
Indicated - 8,513,000 tonnes grading 3.43 g/t gold equivalent for 939,000 contained ozs of gold, from: 573,000 ozs Au grading at 2.09 g/t, 4,285,000 ozs Ag grading at 15.65 g/t, 79,048k lbs Cu grading at 0.42%, 45,171k lbs Pb grading at 0.24% and 53,482k lbs of Zn grading at 0.21%.
An Inferred resource estimate of 2,534,000 tonnes grading 2.90 g/t gold equivalent for 236,000 contained ozs of gold has also been established.
The resources are stated at a 1.30 g/t gold equivalent cut‐off. Metal prices assumed for the gold equivalent calculation are US$1,500/oz for gold, US$32.50/oz for silver, US$3.90/lb for copper, US$1.05/lb for lead and US$1.00/lb for zinc. The gold equivalent calculation assumes 100% metallurgical recovery, and does not account for any smelting, transportation or refining charges. See further disclosure regarding the calculated gold equivalent cut-off grade, as below.
Invicta's approved EIA allows for mine production at 1,000 tpd although the current mining plan is limited to 400 tpd.
Cautionary Note Regarding the Invicta Production Decision
The decision to commence production at the Invicta Gold Project and the Company's plans for a mining operation as referenced herein (the "Production Decision and Plans") were based on economic models prepared by the Company in conjunction with management's knowledge of the property and the existing estimate of measured, indicated and inferred mineral resources on the property. The Production Decision and Plans were not based on a preliminary economic assessment, a pre-feasibility study or a feasibility study of mineral reserves demonstrating economic and technical viability. Accordingly, there is increased uncertainty and economic and technical risks of failure associated with the Production Decision and Plans, in particular the risk that mineral grades will be lower than expected, the risk that construction or ongoing mining operations are more difficult or more expensive than expected, the risk that the Company will not be able to transport or sell the mineralized rock it produces to local custom toll mills on the terms it expects, or at all; production and economic variables may vary considerably, due to the absence of a detailed economic and technical analysis according to and in accordance with NI 43-101.
Josnitoro Gold Project - the Company holds an option to earn a 65% interest on this project from Hochschild Mining PLC. The project is located approximately 600 kilometres by road southeast of Lima in the Department of Apurimac, southern Peru, within which lies the La Arena mine (Tahoe Resources) and the Constancia mine (HudBay Minerals). Historical work on the disseminated gold zones includes over 170 shallow drill holes and extensive surface trenching, as well as artisanal mining.
Crucero Gold Project - the Company holds a 100% interest in the Crucero Gold Project located in southern Peru. Crucero has an Indicated mineral resource estimate of 1,003,041 ozs Au contained in 30,919,873 tonnes at 1.02 g/t gold (capped) and an Inferred mineral resource estimate of 1,027,806 ozs Au contained in 31,201,648 tonnes at 1.03 g/t gold (capped). These mineral resource estimates have been constrained by a conceptual pit shell in order to support reasonable prospects of economic extraction as set out in the CIM Definition Standards for Mineral Resources and Mineral Reserves and NI 43-101.
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.
FOR FURTHER INFORMATION PLEASE CONTACT:
Gordon L. Ellis, President & C.E.O.
(604) 681-5900
or visit the Company's profile at www.sedar.com or its website at www.lupakagold.com
