REG - Panthera Resources - Issue of Notice of Dispute with India

Panthera ResourcesAnnouncement

02/01/2024 07:00

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RNS Number : 3349Y  Panthera Resources PLC  02 January 2024

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the UK Market Abuse
Regulation

 

2 January 2024

 

Panthera Resources Plc

("Panthera" or the "Company")

 

Issuance of Notice of Dispute with India

 

Gold exploration and development company Panthera Resources Plc (AIM: PAT),
with assets in West Africa and India, is pleased to announce that the
Company's Australian subsidiary, Indo Gold Pty Ltd ("IGPL") has formally
issued a Notice of Dispute ("NoD") to the Republic of India ("India") over the
latter's breaches of its obligations under the 1999 Agreement between the
Government of Australia and the Government of the Republic of India on the
Promotion and Protection of Investments (the "Treaty").

 

Following the delivery of the NoD and in the absence of any meaningful
correspondence in relation to this matter from the Government of India or if
no amicable settlement is reached, IGPL will subsequently deliver a notice of
arbitration to the Government of India. Any such notice of arbitration is
anticipated to be delivered to the Government of India in this first quarter
of 2024.  Under the Treaty, an arbitral tribunal is to be constituted within
two months of delivery of the notice of arbitration.

 

The Company is aware that on 30 September 2023 the Times of India reported
that, based on information from the Geological Survey of India and the
Additional Chief Secretary of Mines, the gold deposit at the site could be
worth over US$1 billion. This valuation has not been independently verified by
the Company. Accordingly, while at this stage the Company is not able to make
any comments in relation to the potential quantum of damages that IGPL will
claim from India, the Company will in due course, announce the actual quantum
of damages that IGPL will claim from India when available. This quantum may
differ from that reported by third parties, including but not limited to, the
Times of India.

 

IGPL's Treaty Claims

 

The Bhukia Project comprises of legal rights that the Company holds via its
Australian subsidiary, IGPL, in respect of an area that was the subject of a
rejected Prospecting Licence Application in Rajasthan by Metal Mining Pvt Ltd
("MMI").  MMI is a wholly owned subsidiary of IGPL.

 

The Company made its initial investment in Bhukia (through IGPL) in in or
around 2004.  IGPL provided substantial funding and managed the joint venture
exploration programmes.  The work programmes were carried out in accordance
with government rules and regulations and reported on time and in a
professional manner.

 

IGPL's right to be granted a Prospecting Licence over Bhukia, through its
joint venture holding, has been consistently frustrated over an extended
period by the Government of Rajasthan ("Rajasthan"). The Prospecting Licence
Application over Bhukia was rejected by Rajasthan again in August 2018,
despite an agreement and Rajasthan's promise to grant the Prospecting Licence,
on various spurious and legally untenable grounds.

 

In 2021, India passed a new act ("MMDR2021") to amend the Mines and Minerals
(Development and Regulation) Act of 2015 ("MMDR2015").  Under Clause 13 of
the MMDR2021, the preferential right to a prospecting licence and
subsequently, a mining lease, lapsed and provisions were included in the Act
to reimburse parties for expenditures incurred.  Under the Treaty, IGPL is
entitled to fair and equitable compensation, not merely reimbursement of
expenditures.

 

The acts and omissions by Rajasthan and India, culminating in the enactment of
MMDR2021 and the recent dismissal of MMI's writ petition, amount to breaches
by India of its obligations under the Treaty, including but not limited to,
Article 3 (Promotion and Protection of Investments), Article 4 (Treatment of
Investments) and Article 7 (Expropriation and Nationalisation) . IGPL will be
seeking damages from India.

 

There can be no certainty as to the outcome of IGPL's Treaty claims.

 

Bhukia Background

 

The Company completed a total of 20 holes drilled between 2005 and 2006 and in
October 2006 reported a JORC compliant mineral resource estimate of 38.5 Mt @
1.4 g/t Au for some 1.74 Moz gold using a cutoff of 0.5 g/t Au (updated in
2017 to comply with JORC 2012). In 2007, it advised shareholders of its plan
to undertake a first-phase, systematic drill-out campaign upon grant of a
prospecting licence, on well-defined exploration targets of 6 Moz gold.  Its
vision from early on was that Bhukia represented an exceptional gold project
capable of supporting a large, low-cost, open pit gold mining operation with
low stripping ratios and copper and cobalt by-product credits.

 

The Geological Survey of India, an agency of the Government of India,
published a report in 2014 after the completion of over 150 drill holes
(Bulletin Series A (April 2014)), wherein it reported at that point in time
reserve/resource estimates of 6.7 Moz gold (excluding additional resources
subsequently found through additional drilling by the Geological Survey of
India).

 

LCM Litigation Financing

 

On 25 August 2023, the Company announced that IGPL had secured up to US$13.6
million in litigation financing ("Facility") with LCM Funding SG Pty Ltd ("LCM
Funding" or the "Funder").  LCM Funding is a subsidiary of Litigation Capital
Management Limited ("LCM"), a firm quoted on the AIM Market of the London
Stock Exchange. LCM is a leading global disputes funder with significant
expertise in international arbitration and cross-border disputes, including
bilateral investment treaty claims over mineral resource assets.

 

The non‐recourse Facility is to be used by IGPL in prosecuting its Treaty
claims against India. If no award and/or recovery are achieved, then LCM
Funding is not entitled to any repayment of the Facility.

 

Contacts

 

Panthera Resources PLC

Mark Bolton (Managing
Director)
+61 411 220 942

 
contact@pantheraresources.com

 

Allenby Capital Limited (Nominated Adviser & Joint
Broker)             +44 (0) 20 3328 5656

John Depasquale / Vivek Bhardwaj (Corporate
Finance)

Guy McDougall / Kelly Gardiner

 

Novum Securities Limited (Joint
Broker)
+44 (0) 20 7399 9400

Colin
Rowbury

 

Subscribe for Regular Updates

 

Follow the Company on Twitter at @PantheraPLC
(https://twitter.com/PantheraPlc)

 

For more information and to subscribe to updates visit: pantheraresources.com
(http://pantheraresources.com)

 

Qualified Person

The technical information contained in this disclosure has been read and
approved by Ian S Cooper (BSc, ARSM, FAusIMM, FGS), who is a qualified
geologist and acts as the Qualified Person under the AIM Rules - Note for
Mining and Oil & Gas Companies.  Mr Cooper is a geological consultant to
Panthera Resources PLC.

 

Glossary

 

 JORC:    Australasian Code for Reporting of Mineral Resources and Ore Reserves' of
          December 2012 ("JORC Code") as prepared by the Joint Ore Reserves Committee of
          the Australasian Institute of Mining and Metallurgy. Terms including Measured,
          Indicated and Inferred Resources as defined therein

 Mt:      Million Tonnes (Metric)

 g/t:     Grammes per Tonne (Metric)

 Moz:     Million Ounces (Troy)

 Au:      The chemical element for Gold

 

Forward-looking Statements

This news release contains forward-looking statements that are based on the
Company's current expectations and estimates. Forward-looking statements are
frequently characterised by words such as "plan", "expect", "project",
"intend", "believe", "anticipate", "estimate", "suggest", "indicate" and other
similar words or statements that certain events or conditions "may" or "will"
occur. Such forward-looking statements involve known and unknown risks,
uncertainties and other factors that could cause actual events or results to
differ materially from estimated or anticipated events or results implied or
expressed in such forward-looking statements. Such factors include, among
others: the actual results of current exploration activities; conclusions of
economic evaluations; changes in project parameters as plans continue to be
refined; possible variations in ore grade or recovery rates; accidents, labour
disputes and other risks of the mining industry; delays in obtaining
governmental approvals or financing; and fluctuations in metal prices. There
may be other factors that cause actions, events or results not to be as
anticipated, estimated or intended. Any forward-looking statement speaks only
as of the date on which it is made and, except as may be required by
applicable securities laws, the Company disclaims any intent or obligation to
update any forward-looking statement, whether as a result of new information,
future events or results or otherwise. Forward-looking statements are not
guarantees of future performance and accordingly, undue reliance should not be
put on such statements due to the inherent uncertainty therein.

 

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