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.
27 September 2024
Panthera Resources Plc
("Panthera" or the
"Company")
Appointment of
Arbitrators
Gold exploration and development company
Panthera Resources Plc (AIM: PAT), with assets in West Africa and
India, is pleased to announce an update on the Company's Australian
subsidiary, Indo Gold Pty Ltd's ("IGPL's") claim against the
Republic of India ("India") over the latter's breach of the 1999
Agreement between the Government of Australia and the Government of
India on the Promotion and Protection of Investments (the
"Treaty").
On 26 July 2024, the Company announced that
IGPL had formally issued a Notice of Arbitration ("NoA") to India
in relation to the Bhukia project. Under the Treaty, an
arbitral tribunal comprising three members, including a Chair, is
to be constituted within two months of delivery of the NoA.
The Company advises that IGPL and India have each appointed
an arbitrator, while the appointment of the Chair remains
pending.
The Company will provide further updates as
appropriate.
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 Metal Mining Pvt Ltd ("MMI"). MMI
is a wholly owned subsidiary of IGPL.
The Company made its initial investment in the
Bhukia project (through IGPL) in or around 2004. IGPL
provided substantial funding and managed the joint venture
exploration programmes. IGPL's right to be granted a Prospecting
Licence over the Bhukia project, through its joint venture holding,
was denied and frustrated over an extended period by the Government
of Rajasthan ("GoR"). 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 a
Mining Lease was revoked.
By virtue of the acts of India, culminating in
the enactment of the MMDR2021, India breached 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 is now seeking damages
from India.
There can be no certainty as to the outcome of
IGPL's Treaty claims.
Bhukia Project
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 the Bhukia project 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 GSI published a report in 2014 after the
completion of over 150 drill holes (Bulletin Series A (April
2014)), wherein it reported an indicated and inferred resource
estimate of 6.7 Moz gold (excluding additional resources
subsequently found through additional drilling by the GSI). The
estimate was reportedly prepared according to the UNFC code. More
recently, the GoR 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. According to Indian law, the resource estimate was
required to be prepared in accordance with the Minerals (Evidence
of Mineral Contents) Rules 2015 ("MEMCR") which are based on the
United Nations Framework Classification (UNFC) and Committee for
Mineral Reserves International Reporting Standards (CRIRSCO),
though modifications to these standards have been made by India in
formulating the terms of the MEMCR.
More recently, India has auctioned part of the
Bhukia project area (including the area containing the above
resource) to a third party, Mr. Saiyyed Owais Ali. The terms of the
winning bid were as follows:
- US$60m in
upfront payments;
- US$60m in
performance guarantees (vis-à-vis development work); and
- A 65.3%
'mineral share'.
The 'mineral share' to which India is entitled
confers upon India fees equivalent to 65.3% of the value of all
gold contained in situ in
ore extracted from the Bhukia project area during
mining.
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**