Gold exploration and development company Panthera Resources PLC (AIM:PAT)’s subsidiary Indo Gold has received an unconditional $13.6 million funding facility from LCM Funding to pursue claims against the Indian government.
Earlier this year, Panthera revealed that Indo Gold had secured a conditional arbitration funding agreement for up to $10.5 million from LCM Funding.
LCM increased the funding amount following thorough due diligence.
All funds provided through this agreement are non-recourse, meaning they are only repayable if there's a successful recovery.
To bolster its claims against India, Indo Gold has also appointed several top-tier industry advisors and experts.
The claims stem from the 1999 Agreement between the Government of Australia and the Government of the Republic of India on the promotion and protection of investments.
Indo Gold has accused the Indian government of alleged breaches of its obligations under the Australia-India Bilateral Investment Treaty.
LCM is a leading global litigation financier with significant expertise in international arbitration and cross-border disputes, including bilateral investment treaty claims over mineral resource assets.
Commenting on the announcement, Mark Bolton, managing director of Panthera said: "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.
“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.”
Panthera’s chairman Mike Higgins thanked Bolton for his “dedicated pursuit and achievement of what we hope and expect will be, eventually, a very positive outcome for the company".
Higgins noted that there have been many attempts to settle matters with governments in India over obstacles to Bhukia permitting since 2005, yet none has been successful.
“Obviously, our objective all along was to have put the major gold discovery at Bhukia into production many years ago. Nevertheless, with no other choice, we take this arbitration approach cautiously and yet steadfast in our belief in our rights and confident of the final, successful, outcome,” he added.