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
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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.
**ENDS**