Panthera gets stay order over Bhukia joint venture

The AIM-traded firm said the court had admitted the writ petition filed by its joint venture partner Metal Mines India.

It said the government of Rajasthan had been given four weeks to respond to the writ petition before subsequent hearings would determine the matter.

The company said it was was recently advised by the government of Rajasthan that the PLA made on behalf of the joint venture by Metal Mines India had been rejected.

It said the notification was in response to an order issued by the court on 22 January, where the court directed the government of Rajasthan to take a final decision on the pending PLA, preferably within three months from the date of the order, and gave the joint venture liberty to file with fresh cause of action, in case it was aggrieved by the decision of the government.

The company said it immediately moved to exercise the legal recourse available to it, by filing a writ petition before the court, challenging the order of the government rejecting its main PLA.

At a hearing on 26 September, the court admitted the writ petition, issued notice to the government of Rajasthan, and asked for a response within four weeks.

The court also gave interim protection to the joint venture by ordering the government to restrain from dealing with the area comprised in the PLA, until further orders.

“This was the predicted outcome for the company and it provides excellent protection of Panthera's rights and allows the company several good options to advance the permit to its rightful grant,” the Panthera board said in its statement.

Panthera said the court heard the matter in detail, and found the grounds for rejection to be “without merit” as they questioned the validity of the sanctioned reconnaissance permit in favour of the joint venture, and the preferential rights accrued in favour of the company after it successfully completed reconnaissance work under the permit.

The interim order was passed ex party, at the first effective hearing, with the board saying it reflected the “strong case” it had to protect its legal rights and to have the rejection order reversed.

“We are very pleased that the courts of India have again proved to be effective in protecting the company's rights to the Bhukia project,” said managing director Geoff Stanley.

“This strong protection offers additional paths to resolve the permitting process with the government of Rajasthan, puts us in a strong negotiating position, and validates our rights.”

Stanley said the Bhukia project could represent “one of the most significant” undeveloped gold and copper deposits currently known, and despite the ongoing delays, Panthera remained confident of its rights and believed opportunity to advance such a high-quality project was within reach.

“I look forward to updating the market as further progress is achieved toward the goal of being able to grow the existing JORC 2012 resource of 1.74 million ounces by drill defining the larger exploration target, which currently stands at over 6.0 million ounces.”