LONDON (ShareCast) - (Sharecast News) - Panthera Resources updated the market on arbitration proceedings against the Republic of India on Friday, initiated by its Australian subsidiary Indo Gold (IGPL).
The AIM-traded firm said the dispute concerned India's alleged breach of a bilateral investment treaty related to IGPL's investment in the Bhukia gold project in Rajasthan.

Following an initial tribunal hearing in December, the parties and the tribunal had finalised terms of appointment, including the Permanent Court of Arbitration (PCA) as administrator and London as the arbitration's legal seat, with provisions for confidentiality and optional hearings in other locations.

The company said the PCA would provide public updates on the case's basic details.

It said the Bhukia project, with a reported mineral resource estimate of up to 7.2 million ounces of gold and associated copper credits, had been a point of contention since IGPL's prospecting licence application was rejected.

India's subsequent legislative changes under the MMDR2021 Act effectively revoked IGPL's preferential rights, leading to the arbitration claim.

IGPL alleged that India violated multiple treaty provisions, resulting in the total loss of its investment.

India recently auctioned part of the Bhukia project to a third party, generating significant upfront payments and guaranteeing the government a 65.3% mineral share in future gold extraction.

IGPL was seeking damages, but Panthera cautioned that the outcome of its treaty claim remained uncertain.

The arbitration was being financed by Litigation Capital Management (LCM), which provided a non-recourse facility of up to $13.6m.

That funding deal would enable IGPL to pursue its claims without repayment obligations in the absence of a recovery.

At 1400 GMT, shares in Panthera Resources were down 2.3% at 8.5p.

Reporting by Josh White for Sharecast.com.

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