Lupaka Gold (LPK.V) has pulled off quite a coup by securing a letter of intent for a US$10.6M funding round to get its Invicta poly-metallic project in Peru up and running. Even though the letter of intent with Pandion Mining Finance is non-binding, it most definitely is a major step forward and a great step in the right direction of not just the project, but the company as a whole.
A first tranche of US$3.6M will be made available upon Pandion completing its due diligence within 90 days as part of a prepaid gold purchase agreement (with the exact terms still to be announced), and this will allow Lupaka to start operating at 150 tonnes per day, using the processing plants, as planned.
In a second step, Pandion will make an additional US$7M available to increase the production rate to 350 tonnes per day and finance Lupaka Gold to build (and operate) its own processing plant.
We are still waiting to see the final details of this transaction, but just the basic fact of ‘finding’ financing for the Invicta project is a major step forward.