Panthera gets funding confirmed for subsidiary's claims against India

Gold explorer and developer Panthera Resources announced on Friday that LCM Funding has finalised its due diligence, and subsequently issued a funding confirmation notice for a litigation facility for its subsidiary Indo Gold (IGPL).

The AIM-traded firm said the funding would bolster IGPL's pursuit of claims against the Republic of India, stemming from the 1999 Agreement on the Promotion and Protection of Investments - an accord between the governments of Australia and India.

In late February, Panthera announced that its subsidiary IGPL had entered into an initial arbitration funding agreement with LCM Funding, stipulating a potential litigation financing of up to $10.5m.

Following a rigorous and detailed due diligence examination by LCM Funding, that figure had been revised upwards to $13.6m.

It said an essential clause in the arbitration funding agreement outlined that any funds provided were on a non-recourse basis, implying that repayment was contingent solely on a successful recovery.

IGPL had meanwhile brought on board a cadre of top-tier industry advisors and experts, which Panthera said would play a crucial role in fortifying its claims against the Republic of India.

“Following an extended due diligence process, we are pleased that LCM has reaffirmed its view that IGPL has a meritorious claim against the Republic of India,” said managing director Mark Bolton.

“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.”

Bolton said that in addition to working with Fasken, IGPL had used the period to select several leading investment treaty law and mining industry advisors and experts to assist in the arbitration.

“The increased facility ensures that IGPL has the necessary resources to fully - and successfully - prosecute the merits of its claims under the treaty.”

At 0814 BST, shares in Panthera Resources were up 30.38% at 8.48p.

Reporting by Josh White for Sharecast.com.