TIDMPAT
RNS Number : 0389T
Panthera Resources PLC
12 November 2019
Panthera Resources Plc
("Panthera" or "the Company")
Rajasthan Writ Reply Filed and RIM Financing Complete
Panthera Resources plc (AIM: PAT), the gold exploration and
development company with assets in India and West Africa, is
pleased to announce that the Government of Rajasthan (GoR) has
finally filed its reply to the Writ petition filed by Metal Mines
India Pvt. Ltd (MMI) on behalf of the Bhukia Joint Venture (Bhukia
JV). Additionally, Panthera has received the final tranche of its
recently announced GBP500,000 financing from Republic Investment
Management (RIM).
Highlights
-- The GoR has finally filed its reply to the Bhukia JV's Writ
Petition that was lodged in September 2018 bringing another
government delay to an end.
-- The GoR's reply raised no new matters and again relies on
three weak arguments that have been repeatedly raised and
previously rebuffed by multiple tribunals, committees and courts of
India.
-- Panthera will now prepare a rejoinder to the reply, which we
anticipate will be lodged later this week, following which the
matter will be up for final hearing and issuance of a
judgement.
-- While we are optimistic of a near term date for a final
hearing, the current overloaded state of the Rajasthan High Court
(Court) necessitates caution in setting expectations regarding a
final resolution date.
-- In other positive news, Panthera has received the final
GBP100,000 of the recently announced GBP500,000 financing which was
negotiated with Republic Investment Management (RIM) and priced at
GBP0.10 per share.
Geoff Stanley, Managing Director said "We welcome the response
from the GoR even though they are putting forward redundant,
previously rebuffed arguments, as it finally allows the Company to
file for a final hearing and bring this matter to a conclusion.
With the way now clear for a final resolution to the permitting of
the Bhukia project we are optimistic that exploration will soon
recommence, and the 6.7 million ounces gold resource calculated by
the Geological Survey of India (GSI) can be drill-confirmed and
brought into alignment with the requirements for JORC and 43-101
compliance. The completion of the RIM financing will assist in
maintaining a prudent balance sheet. "
Writ Petition Reply
The GoR has filed its long overdue reply to the Writ Petition
filed with the Court by our JV partner, MMI. It is a disturbing
fact that the reply took over a year from the filing of the writ
petition and almost six months after the Court ordered the response
to be submitted within four weeks. The GoR has now also filed an
application to vacate the prevailing Stay Order, passed in the JV's
favour, preventing the GoR from dealing with the area covered by
our Prospecting License (PL) application. This Stay Order was
granted by the Court to specifically protect the JV's rights until
the matter was resolved, and the Company following legal advice see
no reason why it would not remain until such time.
Not surprisingly, after 11 years of ongoing delays, no fresh
arguments have been introduced by the GoR in its reply. It simply
reiterates the same three points made many times previously. These
are:
1. Metal Mining India Pvt Ltd (MMI) did not qualify under
Section 10A(2)(b) of the Mining Act amended in January 2015.
Panthera Comment: Section 10A(2)(b) provided an exception to the
rule requiring all resources to be granted via an auction process
and protected the rights of those who had carried out
reconnaissance work prior to the 2015 amendment. This argument by
the GoR has absolutely no basis, as the Directorate of Mines and
Geology, Rajasthan, (DMG); Mines Department, Government of India;
and the Joint Committee comprising of the DMG, Indian Bureau of
Mines (IBM) and the GSI have all found that our PL application
satisfied all conditions necessary to be saved under Section
10A(2)(b).
2. The PL area was not free at the time of the grant of the
initial Reconnaissance Permit (RP) in 2004, thus MMI doesn't have
preferential rights for the grant of the PL.
Panthera Comment: This argument is again baseless as the area in
question was declared free by the GoR's own notifications prior to
the execution of the RP in favour of MMI.
3. The RP was granted in favour of Metal Mining India Limited
and the PL was applied for in the name of Metal Mining India
Private Limited Limited and the change of name represents a change
of entity and hence an illegal transfer of ownership occurred.
Panthera Comment: This argument is again baseless, as is laid
out with absolute clarity in the Indian Companies Act of 2013, by
simply changing the name of a company or the structure of a
company, the identity of a company does not change. The GoR was
informed of the change in the name of MMI and there is long history
of communication from the GoR acknowledging this change. Thus, this
argument too lacks substance.
Panthera is now in the process of preparing a detailed rejoinder
to the reply, which will again counter the points raised by the
GoR. Once the rejoinder is filed in court, all pleadings will be
complete and on record. The Writ Petition can then be put up for
final hearing and issuance of judgement.
RIM Funding
Further to the announcement of 23 October 2019, the final
GBP100,000 tranche of the recently announced GBP500,000 financing
has been received. Application will be made to the London Stock
Exchange for 1,300,000 new Ordinary Shares to be admitted to
trading on the AIM market with admission expected to occur on or
around 18 November 2019 (Admission). This includes the settlement
of GBP30,000 (300,000 new Ordinary Shares) previously received from
RIM which the Company were waiting to settle pending receipt of the
full GBP130,000 split tranche amount.
The GBP500,000 financing was priced at GBP0.10 per share and was
made possible by the renegotiation of Tranche 3 of the 3-stage
financing agreement between RIM and Panthera.
The remaining GBP1,000,000 of the Tranche 3 RIM financing,
combined with the US$750,000 committed through the Galaxy Gold
transaction, will provide approximately A$2.6m (US$1.8m) at the
appropriate time to begin drilling out Bhukia's 6.7Moz exploration
target as defined by the GSI.
For the purposes of the Financial Conduct Authority's Disclosure
and Transparency Rules ("DTRs"), the issued Ordinary Share capital
of Panthera following Admission will consist of 75,210,751 Ordinary
Shares with voting rights attached (one vote per share). There are
no shares held in treasury. This total voting rights figure may be
used by shareholders as the denominator for the calculation by
which they will determine whether they are required to notify their
interest in, or a change to their interest in, Panthera under the
DTRs.
Enquiries
Panthera Resources PLC
Geoff Stanley (CEO) +1 (917) 941 7704
Nominated Advisor and Broker
RFC Ambrian +44 (0) 20 3440 6800
Rob Adamson
Bhavesh Patel
Charlie Cryer
Market Abuse Regulation (MAR) Disclosure
The information communicated in this announcement includes
inside information for the purposes of Article 7 of Regulation
596/2014.
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END
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