Panthera Resources PLC on Friday said it has secured funding for its subsidiary’s legal claims in India.
Panthera shares jumped 25% to 8.13 pence each on Friday morning in London.
The London-based gold explorer with projects in India and Africa said LCM Funding SG has completed the due diligence and issued the funding confirmation notice for $13.6 million of funding for Panthera’s subsidiary Indo Gold Pty Ltd.
The due diligence deadline for LCM had been extended several times, and the latest deadline was Friday.
An unconditional funding facility has now been made available to Indo, in order to support its claims against the government of India, Panthera said. The claims relate to a rejected prospecting licence application in the state of Rajasthan.
The funding has been made via a conditional arbitration funding deal, which means that it will only be repaid in the event of a successful recovery.
The firm noted that Indo entered a funding deal in February for $10.5 million with LCM, with the new deal increasing the funding figure.
‘We are pleased that LCM has reaffirmed its view that IGPL has a meritorious claim against the Republic of India. LCM’s detailed examination, supported by advice from multiple legal, mining and valuation experts over many months reinforces the view that an actionable expropriation, amongst other Treaty breaches perpetrated by India, has occurred to an asset of substantial value to the company,’ Mark Bolton, Panthera’s managing director, said.
Copyright 2023 Alliance News Ltd. All Rights Reserved.
