Panthera Resources PLC (AIM:PAT) agreed to acquire Metal Mining India Private, the company's joint venture partner in the Bhukia and Taregaon projects.
Alongside the deal, the junior is also raising £780,000 in new money through a share subscription at 10p per share.
Subsidiary Indo Gold (IGL) will execute the deal, which sees it take 100% ownership of the projects, giving Panthera a 95% interest.
IGL will acquire all of MMI's shares and has secured cooperation from the former shareholders in relation to a potential claim under the Australia-India Bilateral Investment Treaty.
The aggregate consideration is A$1.82mln (£0.99mln), comprising £0.5mln cash, the assumption of a £0.12mln loan and the restin Panthera shares.
Mark Bolton, Panthera’s managing director, said: “The acquisition of MMI and its shareholders' legal rights has sound commercial merit for Panthera.
“Should the company resolve its ongoing dispute through the grant of the Bhukia Project PL, the purchase price is compelling.
“Furthermore, IGL's interest in the Bhukia Project will increase from 70% to 100%.
“Should the company initiate an arbitration claim against the Government of India, the acquisition substantially simplifies the claim for damages.
“In addition, the company would benefit from increased participation and cooperation in the legal proceedings, which would hopefully lead to a successful ABIT claim.”
Bolton added Panthera is in preliminary discussions with a potential new joint venture partner who will assist with its ongoing operations, including the resolution of the ongoing dispute to grant the Bhukia Project.”