REG - Panthera Resources - Update On Dispute With India

Panthera ResourcesAnnouncement

02/04/2024 07:15

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RNS Number : 9113I  Panthera Resources PLC  02 April 2024

2 April 2024

 

Panthera Resources Plc

("Panthera" or the "Company")

 

Update on Dispute with India

 

Gold exploration and development company Panthera Resources Plc (AIM: PAT),
with assets in West Africa and India, provides the following update on the
dispute with 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").

 

On 2 January 2024, the Company announced that its Australian subsidiary, Indo
Gold Pty Ltd ("IGPL"), formally issued a Notice of Dispute ("NoD") to India in
relation to the Bhukia project. In accordance with the Treaty, the parties
must attempt to reach an amicable settlement and efforts are ongoing to
determine if any potential exists for such a settlement of the dispute.  If
the efforts at settlement prove ineffective, IGPL will promptly deliver a
notice of arbitration to the Government of India.

 

The Company will provide further updates as appropriate.

 

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 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 dismissal in September 2023 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
indicated and inferred resource estimates of 6.7 Moz gold (excluding
additional resources subsequently found through additional drilling by the
Geological Survey of India). The estimate was reportedly prepared according to
the UNFC code. More recently, Rajasthan issued a gazette notification
containing an updated resource estimate of 113.52 Mt at 1.96 g/t and 0.14% Cu,
which amounts to 7.2 Moz of gold plus copper with accessory nickel and cobalt.
It is not reported what code was followed in preparing the updated estimate.

 

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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