Lupaka Gold (LPK.TO) has announced it came to an agreement with the local community at Crucero to extend the exploration agreement with 4 years, which is one year longer than the previous agreement. The company is also required to secure access to the properties from families who used the local lands for their alpaca’s. Lupaka announced it has already signed a number of agreements with such families. As it’s extremely important to have a good relationship with the local communities in Peru, we consider this to be a positive step forward for the company, as Lupaka seems to have the full support of the community.
Lupaka was also awarded two mineral concessions by the Ministry of Energy and Mines in Peru. As these are awarded by the central government in Lima, these concessions are the ‘highest and most secure form of mineral rights ownership in Peru’.
The company’s share price has held up relatively well, as it’s currently trading at approximately the same level as on April 12th when the gold price started to fall. Lupaka remains well-financed with approximately C$7M in cash as of June this year.
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Disclosure: The author holds a long position in Lupaka Gold. Lupaka is a sponsor of the website. Please see our disclaimer for current positions.
