MMDR Bill of 2021

RNS Number : 3919S

Panthera Resources PLC

16 March 2021

 

16 March 2021

Panthera Resources Plc

(Panthera or the Company)

Mines and Minerals (Development and Regulation) Bill of 2021

Panthera Resources Plc (AIM: PAT), the diversified gold exploration and development company with assets in West Africa and India, advises that the Government of India has introduced a new bill (MMDR2021) into the Lok Sabha, the Lower House of the Government of India's (GoI) Parliament, to amend the Mines and Minerals (Development and Regulation) Act of 2015 (MMDR2015).

As the bill has only recently been made available, the Company is yet to seek formal legal advice on its application to our investments in India and any comments expressed herein are merely preliminary.  

In the event this new MMDR2021 act is passed by both houses of Parliament, the Company believes that it may have an impact on the Company's joint venture partner, Metal Mining India Pvt Ltd (MMI), in terms of its right to secure approval of its Prospecting Licence Applications (PLAs) for the Bhukia and Taregaon Projects in India.  

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, have been consistently frustrated over an extended period by the Government of Rajasthan (GoR).  More recently, the Prospecting Licence Application over Bhukia was again rejected by the GoR in August 2018 on various spurious and legally untenable grounds.  The Company subsequently obtained an interim Stay Order from the Hon'ble Rajasthan High Court which remains in place subject to ongoing proceedings there.

Currently, certain PLAs, are preserved under Clause 10A2(b) of the MMDR2015, However, we believe subject to legal advice, that under Clause 13 of the proposed MMDR2021 bill, any pending PLAs shall lapse on the date of commencement of the new MMDR2021 Act.  Furthermore, under Clause 13, the holder of a reconnaissance permit or prospecting licence whose rights lapsed shall be reimbursed the expenditure incurred towards reconnaissance or prospecting operations in such manner as may be prescribed by the GoI.  This expenditure on account of reimbursement may increase in case any foreign investor invokes Bilateral Investment Promotion and Protection Agreements executed between India and other countries.

On 18 February 2021, the Company announced that it had appointed Fasken to advise the Company on a potential dispute with the Republic of India concerning the Bhukia Joint Venture Project (Bhukia).  Specifically, Fasken is advising 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 a significant asset of our Company.

While the Company will actively seek the approval of the Bhukia Prospecting Licence, it is essential that it considers all of its rights pertaining to its investments in India.  The recent appointment of Fasken ensures that it is well-positioned to consider all of its options.

It is believed that our Company's position is strengthened following the recent successful US$1.4 billion international arbitration award in favour of Cairn Energy Plc against the Government of India conducted under a similar bilateral investment treaty.  It has been further reported that the award in favour of Cairn has been recognised and confirmed by courts in the US, the UK, Netherlands, Canada and France with applications for recognition in additional jurisdictions underway.

Importantly, despite prescriptions made within this new MMDR2021 bill about the manner of compensation available to parties, our Company's present advice is that under the ABIT, any such compensation awarded may be computed on the basis of the market value of our investment in India.

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 the Government of India in order to develop Bhukia after 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 advises that the MMDR2021 bill has not been passed and there can be no certainty on the timing or the application of the bill on the Company ongoing dispute with the GoR.  The Company is considering all of its legal options.

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.

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