LONDON - Panthera Resources Plc (AIM: PAT), a gold exploration and development company with assets in West Africa and India, has announced the appointment of a Chair to the Arbitral Tribunal concerning its subsidiary, Indo Gold Pty Ltd's (IGPL), claims against the Republic of India. The appointment completes the three-member panel, which was pending since the issue of a Notice of Arbitration on July 26, 2024.
IGPL's claim relates to the Bhukia project in Rajasthan, India, where its application for a Prospecting Licence was persistently denied by the Government of Rajasthan. The dispute escalated following India's enactment of the Mines and Minerals (Development and Regulation) Amendment Act 2021, which revoked the preferential right to a Prospecting Licence and Mining Lease previously held by IGPL.
The claim alleges breaches of the 1999 Agreement between the Government of Australia and the Government of India on the Promotion and Protection of Investments, specifically citing articles concerning the promotion and protection of investments, treatment of investments, and expropriation and nationalisation.
The Bhukia project had reported significant gold resources, with IGPL's investment dating back to 2004, including a JORC compliant mineral resource estimate announced in October 2006. Despite the project's potential, part of the area was recently auctioned to a third party, which has led to IGPL seeking damages from India for the total loss of its investment.
In August 2023, IGPL secured up to $13.6 million in litigation financing from LCM Funding SG Pty Ltd, a subsidiary of Litigation Capital Management Limited, to support its arbitration process. The funding is non-recourse, meaning no repayment is required if no award or recovery is achieved.
While the company remains transparent about the ongoing legal proceedings, it has stated that there is no certainty regarding the outcome of the arbitration. Panthera Resources will provide further updates as the situation develops.
This news article is based on a press release statement from Panthera Resources Plc.
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