TIDMPAT
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
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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.
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