The Board of Panthera is pleased to announce that its subsidiary, Indo Gold Pty Limited (“IGL”), has entered into various agreements (the “Agreements”) to acquire Metal Mining India Private Limited (“MMI”), the Company’s joint venture (“JV”) partner in India, in respect of the Bhukia and Taregaon projects.
Commenting on the MMI acquisition, Mr. Mark Bolton, Managing Director of Panthera said:
“We wish to thank MMI and its shareholders for their dogged support over many years and numerous challenges. We wish them well with their future endeavours and also welcome them as significant new Panthera shareholders.
The acquisition of MMI and its shareholders’ legal rights has sound commercial merit for Panthera.
Should the Company resolve its ongoing dispute through the grant of the Bhukia Project PL, the purchase price is compelling. Furthermore, IGL’s interest in the Bhukia Project will increase from 70% to 100%.
Should the Company initiate an arbitration claim against the Government of India, the acquisition substantially simplifies the claim for damages. In addition, the Company would benefit from increased participation and cooperation in the legal proceedings, which would hopefully lead to a successful ABIT claim.
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 to develop Bhukia upon being granted the PL and deliver employment and tax revenues to the people of India as well as returns to our investors.