(Alliance News) - Panthera Resources PLC on Wednesday said the High Court of Rajasthan in India dismissed subsidiary Metal Mining India Pte Ltd's petition based on the recent 2012 Mines & Minerals (Development & Regulation) Amendment Act.
Shares in Panthera Resources were down 14% to 9.70 pence each in London on Wednesday early afternoon.
The London-based gold explorer with projects in India and Africa said the court decision "adds to the act of expropriation" by the Indian government, accusing it of "breach[ing] its obligations to provide investment protections".
Panthera Resources said it intends to focus on pursuing its claim against India for breaches of its obligations under the Australia-India Bilateral Investment Treaty.
This is after taking into account the recent successful arbitration funding confirmation notice late last month, in which it said LCM Funding SG Pty Ltd successfully completed its due diligence and issued the notice.
This made an unconditional funding facility has been made available for the Panthera Resources' subsidiary Indo Gold Pty Ltd to support its claims against India under the treaty with Australia.
The Bhukia project comprises legal rights that Panthera Resources holds via Indo Gold over an area that was the subject of a rejected prospecting licence application in Rajasthan by Metal Mining India.
"Under the treaty, compensation for expropriation is required to be calculated on the basis of the market value of the investment immediately before the expropriation. The company believes that the market value of Bhukia is substantial with the project ranking among the top undeveloped gold projects in the world," said Panthera Resources Managing Director Mark Bolton.
By Greg Rosenvinge, Alliance News reporter
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Panthera Res. (PAT)