Proactive Investors - Panthera Resources PLC (LON:PATP), the gold mining company, was marked 18% higher on Friday after its subsidiary Indo Gold received US$13.6 million in funding to pursue claims against the Indian government.
Litigation Capital Management (LCM), the Australian finance company, upped the non-recourse funding from the initial US$10.5 million, announced in February this year, to US$13.6 million following the results of a “comprehensive and robust” due diligence process.
Claims arose from the 1999 Promotion and Protection of Investments agreement between the Australian and Indian governments and Indo Gold argues the latter allegedly breached its obligations under the Australia-India Bilateral Investment Treaty.
Several leading industry experts and advisors are in support of Indo’s claims and Mark Bolton, managing director at Panthera Resources, welcomed LCM’s support of what he calls a “meritorious claim against the Indian government”.
“The increased Facility ensures that IGPL has the necessary resources to fully - and successfully - prosecute the merits of its claims under the Treaty,” Bolton said in a company statement.
Panthera’s boost on Friday means the stock is up more than 72.5% in the year-to-date, having opened at just under 8.5p.