Panthera Resources extends arbitration funding deadline

Gold exploration and development company Panthera Resources updated the market on Indo Gold’s conditional arbitration funding agreement (AFA) with LCM Funding SG (LCM).

The AIM-traded initially announced the AFA, which involves up to $10.5m in litigation financing, on 28 February.

It had granted LCM a one-month extension to complete its detailed due diligence, extending the deadline to 31 May.

The purpose of the extension was to allow LCM to assess the situation and present its findings, with Panthera reporting that all third-party experts had recently submitted their due diligence findings.

However, considering the newly-received findings, Panthera said it had agreed to grant LCM an additional extension to the due diligence period to 30 June.

Panthera said it did not anticipate further extensions beyond that date.

On the successful completion of LCM's due diligence, both parties could proceed with finalising a funding confirmation notice.

“In addition to pursuing a potential claim against the Republic of India for breaches of its obligations under the Australia-India Bilateral Investment Treaty, the company continues to pursue an amicable resolution of the dispute and the grant of the Bhukia Prospecting Licence,” the Panthera board said in its statement.

“In this regard, the company remains in advanced discussions with a potential joint venture partner pending the resolution of the LFA.”

At 0936 BST, shares in Panthera Resources were down 3.15% at 4.31p.

Reporting by Josh White for Sharecast.com.