Panthera brings $1.58bn claim against India

(Sharecast News) - Panthera Resources announced on Monday that it has filed a $1.58bn claim against the Republic of India, net of Indian taxes, in a bilateral investment treaty arbitration concerning the Bhukia gold project in Rajasthan.

The AIM-traded firm said the claim, lodged by its Australian subsidiary Indo Gold (IGPL), alleged that India breached provisions of the 1999 investment treaty between India and Australia, including unlawful expropriation and failure to protect foreign investment.

It said the case centred on the rejection of a prospecting licence that IGPL claimed it was entitled to under its joint venture with Metal Mining.

The arbitration followed India's 2021 amendment to its mining laws, which revoked IGPL's preferential rights to a licence.

Panthera said India had since auctioned part of the Bhukia licence area - containing an estimated 7.2 million ounces of gold - to a third party, with the government retaining a 65.3% mineral share.

IGPL's claim was backed by a non-recourse litigation funding facility of up to $13.6m from LCM Funding.

Panthera emphasised the scale and quality of the Bhukia project, citing that historical and government drilling identified multi-million-ounce potential with by-product copper, cobalt and nickel.

There was certainty as to the outcome of the arbitration, the board cautioned.

At 1136 BST, shares in Panthera Resources were down 11.45% at 15.85p.

Reporting by Josh White for Sharecast.com.