Panthera Resources PLC (AIM:PAT) has noted that the Government of Rajasthan (GoR) has announced the preferred bidder with the 'Highest Final Price Offer' of 65.3% for a mining lease on the Bhukiya-Jagpura block.
This follows the issuance of a notice by the GoR on 6 March 2024 inviting bids in the auction of a mining lease of the Bhukiya-Jagpura block, substantively covering the Bhukia project.
Panthera is in dispute with the Indian and Rajasthan governments over the Bhukia project due to alleged breaches of an investment treaty with Australia.
Panthera also noted that the Geological Survey of India (GSI) has reported a mineral resource of 7.15 Moz of gold for Bhukia with a calculated inground value of US$16.7 billion based on the closing gold price of US$2,329/ounce on 24 June 2024.
“From the results of its earlier work at Bhukia, coupled with the evaluation of the subsequent GSI reports, the company believes that the mineral resource potential of Bhukia significantly exceeds that reported by the GSI,” said Panthera’s statement.
In its statement, Panthera added that the 'Highest Final Price Offer' of 65.3%, refers to the percentage of value of mineral despatched each month multiplied by the sale price of the mineral on the month of despatch as published by the Indian Bureau of Mines.
To be awarded the lease, the preferred bidder has to provide an upfront payment of approximately US$60 million (₹500 crore) plus a performance security of approximately US$60 million (₹500 crore)
Panthera claims legal rights at Bhukia via its Australian subsidiary, Indo Gold Pty Ltd (IGPL) following a rejected Prospecting Licence Application in Rajasthan.
Panthera says the applications were rejected on "various spurious and legally untenable grounds", while a new act introduced in India in 2021 included clauses to reimburse parties for expenditures on lapsed mining leases.
The acts and omissions and the dismissal in September 2023 of a writ petition amount to breaches by India of its obligations under the Treaty with Australia, Panthera claims.
IGPL is seeking damages from India, with up to US$13.6 million in non-recourse litigation financing provided by LCM Funding SG.