Panthera Resources PLC (AIM:PAT) said it issued 3.0 million shares and paid £0.5mln in cash as part of the previously announced acquisition of Metal Mining India Private Ltd (MMI), the company's joint venture partner in the Bhukia gold project.
The remaining £0.12mln will be paid on 29 April 2022.
On October 29, Panthera said it agreed to buy MMI and that its 95%-owned Australian subsidiary, Indo Gold (IGL), will execute the deal. IGL's interest in the Bhukia project will increase from 70% to 100% as a result.
READ: Panthera Resources takes control of India joint venture
Panthera made its initial investment in Bhukia through IGL in 2005.
The Bhukia project consists of a prospecting licence application that lies within the area of MMI's formerly granted permits in southern Rajasthan. A total of 21 holes were drilled by IGL and a JORC compliant resource of 1.74 million ounces at 1.4 grammes a tonne gold was reported.
Panthera said its rights to be granted a prospecting licence have been consistently frustrated over an extended period by the government of Rajasthan and in February this year the company announced the appointment of Fasken to advise on a potential dispute with the Republic of India.
Panthera said today it is currently in discussions with several potential litigation funders to support a claim against the Republic of India under the Australia-India Bilateral Investment Treaty.