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In The News - Panthera Resources PLC

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Natural Resources

20 December 2018

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PANTHERA RESOURCES* — Investment in subsidiary by Indian group at substantial premium to market value

Panthera Resources (PAT LN : 1.3p | Speculative Buy) has announced that it has entered into an agreement with Galactic Gold Mines, which will purchase a 10% interest in Panthera’s Indian subsidiary, Indo Gold Pty, for US$1.25m. Galactic is a private Indian company with Australian management that is backed by an Indian venture capital group, Hunch Ventures. It was formed in 2016 to build a portfolio of interests in the Indian gold sector and it intends to pursue a listing on the Bombay Stock Exchange (BSE) in 2019.  

Galactic can also earn up to an additional 12% interest in Indo Gold subject to certain milestones by providing administrative, legal, permitting and technical support to advance the Bhukia JV project (Indo Gold 70%) in India. The parties have also agreed to work towards Indo Gold’s participation in Galactic’s listing on the BSE, which the company believes will more strongly align Indian capital and investors with the success of the project and allow greater participation by Indian investors in the success of the Bhukia project.

The two-staged US$1.25m investment values Panthera’s remaining 95% interest in IGL at £9.1m compared to Panthera’s current market capitalisation of £0.9m, which incorporates its share of the Bhukia JV, its three highly prospective west African gold exploration projects and its approximately 15% stake in Anglo Saxony Mining (which is currently advancing a preliminary feasibility study of the Tellerhauser Sn-Zn-In deposit in Saxony, Germany).

The company also notes that polls in November and December have resulted in a change of Government in Rajasthan and are optimistic that this will have a positive impact on the processing of the application for the Prospecting License for the Bhukia project. Previous work on at the Bhukia Project by the Geological Survey of India outlined a non-compliant resource containing 6.7Moz of gold at a grade of 2.0 g/t Au, while a limited drill programme by the company outlined a JORC-compliant resource of 1.7Moz of gold at a grade of 1.4 g/t. Mineralisation extends from surface, supporting the view that the project should be able to be developed as a large, bulk-mineable, open-pit operation with a low strip ratio. Metallurgical work to date suggests the gold is non-refractory and that the most appropriate processing route is likely to be flotation followed by regrinding and CIL, with 85-90% recoveries expected.

 

The process towards the grant of the PL over the project has been protracted, but the partnership announced today give renewed hope that this issue is once again moving forward towards a successful conclusion. 

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