Fasken to Advise on Investment Treaty

RNS Number : 5506P

Panthera Resources PLC

18 February 2021

 

18 February 2021

Panthera Resources Plc

(Panthera, PAT or the Company)

Fasken to Advise on Investment Treaty

Panthera Resources Plc (AIM: PAT), the diversified gold exploration and development company with assets in West Africa and India, is pleased to announce the appointment of Fasken to advise the Company on a potential dispute with the Republic of India concerning the Bhukia Joint Venture Project (Bhukia).

Fasken is a highly reputable international law firm with extensive experience in international arbitration and dispute resolution, particularly in the mining sector. India has various obligations under the Australia-India Bilateral Investment Treaty of 26 February 1999 (ABIT), as a host state.  

The Company made its initial investment in Bhukia, through its 95% owned Australian subsidiary, Indo Gold Pty Limited, in 2005.  The Company's rights to be granted a Prospecting Licence over Bhukia, through its joint venture partner, by the Government of Rajasthan (GoR) have been consistently frustrated over an extended period.  More recently, the Prospecting Licence Application over Bhukia was again rejected by the GoR in August 2018 on various spurious grounds.  The Company subsequently obtained an interim Stay Order from the Rajasthan High Court which continues to remain in place with the matter subject to ongoing proceedings in the High Court of Rajasthan.

In addition to the above, Fasken will review and advise the Company on its potential dispute under the Australia-India Bilateral Investment Treaty of 26 February 1999 (ABIT) in relation to Bhukia, which includes past, present and any future acts and/or omissions by India and its state entities and actors.

Mark Bolton, Managing Director of Panthera, commented:

"The Bhukia project is an outstanding Tier 1 undeveloped gold project and significant asset of your Company. 

Following the recent successful US$1.2 billion international arbitration award in favour of Cairn Energy Plc against the Government of India conducted under a similar bilateral investment treaty, it is essential that Panthera consider all of its rights pertaining to its investments in India.

Today's appointment of Fasken is the first step to consider our options available to exercise our legal rights under the ABIT.  Under ABIT, the compensation may be computed on the basis of the market value of the investment. 

The Company nevertheless remains committed to an amicable and timely resolution of the dispute through negotiations.  In this regard, the Company has and will continue to engage in good faith dialogue with both the Governments of Rajasthan and India in order to develop Bhukia upon being granted the Prospecting Licence and deliver employment and tax revenues to the people of India as well as returns to our investors.

The Company will provide an update from time to time where circumstances materially change."

Contacts

Panthera Resources PLC

Mark Bolton (Managing Director)  [phone]

  [e-mail]

Allenby Capital Limited (Nominated Adviser & Broker)  [phone]

John Depasquale / Asha Chotai (Corporate Finance)

Guy McDougall (Equity Sales) 

Financial Public Relations

Vigo Communications Ltd  [phone]

Simon Woods / Chris McMahon

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UK Market Abuse Regulation (UK MAR) Disclosure

Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of UK MAR until the release of this announcement.

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**

 

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