LONDON - Gold exploration and development company Panthera Resources Plc (AIM: PAT), which operates in West Africa and India, has announced an update on its arbitration proceedings against the Republic of India concerning the Bhukia project. The company's Australian subsidiary, Indo Gold Pty Ltd (IGPL), is seeking damages for India's alleged breach of a bilateral investment treaty.
The dispute revolves around the denial of a Prospecting Licence for the Bhukia project in Rajasthan, which IGPL contends was in violation of the 1999 Agreement between Australia and India on the Promotion and Protection of Investments. The initial tribunal hearing occurred on Monday, December 16, 2024, following IGPL's Notice of Arbitration issued to India on July 26, 2024.
The terms of appointment to the arbitration have been agreed upon by the parties and the tribunal, which include the Permanent Court of Arbitration's administration of the proceedings and London, United Kingdom (TADAWUL:4280), as the legal seat of the arbitration. The arbitration details will be kept confidential, with only basic case information to be disclosed on the PCA's website.
The Bhukia project, which has been the subject of exploration since 2005, reportedly contains significant gold resources. Despite this, India's 2021 amendment to mining laws and subsequent auctioning of a portion of the project area has led to the loss of IGPL's investment and the current legal action.
IGPL's claim is supported by litigation financing from LCM Funding SG Pty Ltd, a subsidiary of Litigation Capital Management Limited. The non-recourse funding arrangement means that LCM Funding is not entitled to repayment if no award or recovery is achieved from the arbitration.
The outcome of IGPL's Treaty claims against India remains uncertain, and Panthera Resources has committed to providing further updates as they become available. This news is based on a press release statement.
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