Panthera subsidiary IGPL has first arbitration hearing against India

The AIM-traded firm said the initial arbitration hearing had been held, addressing procedural matters such as the timeline for submissions and hearings, as well as the legal seat and location for in-person proceedings.

It said the arbitration followed IGPL's issue of a notice of arbitration (NoA) in July, with the tribunal being fully constituted in November.

Panthera said IGPL's claim stemmed from India’s actions, including amendments to its mining legislation in 2021, which revoked preferential rights to prospecting and mining licences for the Bhukia project.

IGPL alleged that the measures led to the total loss of its investment and constituted breaches of treaty provisions, including expropriation and failure to protect investments.

It said IGPL was seeking damages, though the outcome of the arbitration remained uncertain.

The Bhukia project, which IGPL started investing in around 2004, had long been considered a significant gold asset.

Initial drilling by IGPL identified a resource of 1.74 million ounces of gold, with later estimates from the Geological Survey of India (GSI) and updated by the government of Rajasthan suggesting resources of up to 7.2 million ounces of gold with additional copper, nickel and cobalt credits.

However, part of the Bhukia project area had since been auctioned to a third party, generating substantial payments and performance guarantees for the Indian government.

IGPL was pursuing its arbitration with the support of a $13.6m litigation funding facility provided by LCM Funding SG.

The non-recourse arrangement ensured that repayment was contingent on a successful outcome.

At 1154 GMT, shares in Panthera Resources were down 7.62% at 8.22p.

Reporting by Josh White for Sharecast.com.