REG - Panthera Resources - Rajasthan High Court Decision

Panthera ResourcesAnnouncement

27/09/2023 08:45

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RNS Number : 8252N  Panthera Resources PLC  27 September 2023

27 September 2023

 

Panthera Resources Plc

("Panthera" or the "Company")

 

Bhukia Project

Rajasthan High Court Decision

 

Gold exploration and development company Panthera Resources Plc (AIM: PAT),
with assets in West Africa and India, announces that the High Court of
Rajasthan ("HCR") has today dismissed Metal Mining India Pte Ltd's (MMI) writ
petition based on the recent Mines and Minerals (Development and Regulation)
Amendment Act (2021) ("MMDR2021").  Therefore, and taking into account the
recent successful arbitration Funding Confirmation Notice announced on 25
August 2023, the Company's subsidiary, Indo Gold Pty Ltd ("IGPL") intends to
focus on pursuing its claim against the Republic of India for breaches of its
obligations under the Australia-India Bilateral Investment Treaty (the "BIT"
or the "Treaty").

 

Commenting on the announcement, Mark Bolton, Managing Director of Panthera
said:

 

"The HCR relied upon the 2021 mining legislative amendments enacted by the
Government of India to dismiss the writ petition.

 

Today's decision by the HCR adds to the act of expropriation, and India has
again breached its obligations to provide investment protections to IGPL and
its investment under the - Treaty.

 

Under the Treaty, compensation for expropriation is required to be calculated
on the basis of the market value of the investment immediately before the
expropriation.  The Company believes that the market value of Bhukia is
substantial with the project ranking among the top undeveloped gold projects
in the world."

 

IGPL's Treaty Claims

 

The Bhukia Project comprises 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 MMI.  MMI is a
wholly owned subsidiary of IGPL.

 

The Company made its initial investment in Bhukia (through IGPL) in January
2005.  IGPL provided all of the 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 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.

 

IGPL's investment in Bhukia was expropriated by the actions of Rajasthan and
India through multiple acts culminating in the enactment of MMDR2021 and the
recent dismissal of MMI's writ petition, contrary to Article 7(1) of Treaty.
India has also breached the obligation to accord fair and equitable treatment
to IGPL and its investment under Article 3 of the Treaty. IGPL will be seeking
damages from India.

 

Notwithstanding the positive progress with LCM to date, there can be no
certainty as to the outcome of IGPL's Treaty claims.

 

Bhukia Background

 

The Company completed a total of 21 holes drilled by IGPL and 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 (2008). The resource was updated in 2017 to
comply with JORC 2012.  The Geological Survey of India, an agency of the GoI,
published a report in 2014 after the completion of over 150 drill holes
(Bulletin Series A (April 2014)), wherein it reported reserve/resource
estimates that far exceed the prior figure published by the Company. The
report demonstrated the project's merit as supporting a large, low-cost gold
mining operation with low stripping ratios and copper and cobalt bi-product
credits.

 

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 (Sales & Corporate Broking)

 

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, Fausi MM, 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.

 

UK Market Abuse Regulation (UK MAR) Disclosure

The information contained within this announcement is deemed by the Company to
constitute inside information for the purposes of Regulation 11 of the Market
Abuse (Amendment) (EU Exit) Regulations 2019/310. Upon the publication of this
announcement via a Regulatory Information Service ("RIS"), this inside
information is now considered to be in the public domain.

 

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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