TIDMPAT
RNS Number : 4518K
Panthera Resources PLC
25 August 2023
25 August 2023
Panthera Resources Plc
("Panthera" or the "Company")
Bhukia Project
Arbitration Funding Confirmation Notice
Gold exploration and development company Panthera Resources Plc
(AIM: PAT), with assets in West Africa and India, is pleased to
announce that LCM Funding SG Pty Ltd ("LCM Funding" or the
"Funder") has successfully completed its due diligence and issued
the Funding Confirmation Notice (the "FCN"). Following such
issuance, an unconditional funding facility has been made available
for the Company's subsidiary, Indo Gold Pty Ltd ("IGPL"), to
support IGPL's claims against the Republic of India ("India")
arising from the 1999 Agreement between the Government of Australia
and the Government of the Republic of India ("GoI") on the
Promotion and Protection of Investments (the "Treaty").
On 28 February 2023, the Company announced that IGPL had entered
into a conditional arbitration funding agreement (the "AFA") for up
to US$10.5 million (the "Facility") in litigation financing with
LCM Funding. The Facility has now been increased to US$13.6
million, following the positive results of a comprehensive and
robust due diligence process by LCM Funding.
Highlights
-- Issue of Funding Confirmation Notice for increased
unconditional funding Facility of US$13.6 million.
-- All monies advanced through the AFA are non--recourse and
only repayable in the event of a successful recovery.
-- Appointment of several industry leading advisors and experts
in support of IGPL's claims against India.
Commenting on the announcement, Mark Bolton, Managing Director
of Panthera said:
"Following an extended due diligence process, we are pleased
that LCM has reaffirmed its view that IGPL has a meritorious claim
against the Republic of India. LCM's detailed examination,
supported by advice from multiple legal, mining and valuation
experts over many months reinforces the view that an actionable
expropriation, amongst other Treaty breaches perpetrated by India,
has occurred to an asset of substantial value to the Company.
In addition to working with Fasken, IGPL has used this period to
select several leading investment treaty law and mining industry
advisors and experts to assist in the arbitration. The increased
Facility ensures that IGPL has the necessary resources to fully -
and successfully - prosecute the merits of its claims under the
Treaty.
We again thank Fasken for their ongoing support of the Company's
financing and the advancement of IGPL's Treaty claims."
In addition, Mike Higgins, Panthera's Chairman says:
"I would like to thank Mark Bolton for his dedicated pursuit and
achievement of what we hope and expect will be, eventually, a very
positive outcome for the Company. Over the many years since I
co-founded the group in 2005, there have been many attempts to
settle matters with governments in India over obstacles to Bhukia
permitting. None were successful.
Obviously, our objective all along was to have put the major
gold discovery at Bhukia into production many years ago.
Nevertheless, with no other choice, we take this arbitration
approach cautiously and yet steadfast in our belief in our rights
and confident of the final, successful, outcome.
I also would like to thank all involved in getting us to this
point, especially the Panthera board and the Fasken team."
AFA with LCM
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.
Upon issuance of the FCN, LCM Funding will provide up to US$13.6
million in non--recourse financing to IGPL for use 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.
In the event that there is an award and/or recovery, LCM Funding
shall be entitled, in the first instance, to the amounts it has
deployed from the Facility, as well as the greater of:
a) approximately US$1.36 million being 10% of the Funding Limit
(which is the amount of the Facility);
b) a Funder's commission (the "Commission") of between 5% and
15% of the damages recovered, based upon the number of years that
have passed from the date of the Funding Confirmation Notice;
or
c) a multiple (the "Multiple") of between 2 and 4.25 times the
total of the Facility, based upon the number of years that have
passed from the date of the Funding Confirmation Notice.
In the event that the settlement or award includes the value or
benefit of any property other than cash, pursuant to the terms of
the AFA, IGPL are required to realise and convert a portion of its
interest in the property, or secure external finance, to secure
sufficient cash and then apply it in accordance with the above.
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, India. 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 of time 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. An interim Stay Order was obtained from
the Rajasthan High Court, which remains in place at this time.
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, 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.
The claim for compensation will involve, among others, an
assessment of the market value of the Bhukia Project 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.
Notwithstanding the positive progress with LCM, 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.
Subsequently, much more work has been done on the project to
demonstrate, with confidence, a much larger and more important gold
deposit. 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.
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)
Kelly Gardiner / Stefano Aquilino (Sales & Corporate
Broking)
Novum Securities Limited (Joint Broker) +44 (0) 20 7399 9400
Colin Rowbury
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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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