Some interesting stuff20 Apr 2024 12:32
Sorry if this has already been posted before but having done some more research I have picked out some interesting bullet points and my own assessment but would be interested to hear anymore interesting information and assessments from anyone else.
Panthera appear to be in an extremely strong position being Fully Funded by LCM to see this Arbitration through to the end and with the best possible Attorney’s/Lawyers at their disposal it certainly looks like a great Risk - Reward opportunity.
US$13.6 Million non refundable award by LCM to be repaid from proceeds of claim. (Originally $10M, so a 36% uplift, Massive Achievement)
2 Years + already invested by Faskens and predominantly at their own expense.
1 Year was spent by Litigation Capital Management (LCM) through their due diligence process before making a decision to back Panthera Resources with US$13.6 Millions
The Government of Rajasthan (GoR) case relies on three weak arguments that have been repeatedly raised and previously rebuffed by multiple tribunals, committees and courts of India?
An update by Michael Higgins - Non Executive Chairman 29th September 2023:
“A claim for compensation pursuant to the Treaty will involve an assessment of the market value of the Bhukia project 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.
In order to support a damages claim against the Republic of India for breaches of its obligations under the Treaty, the Company has successfully secured US$13.6 million in arbitration financing from Litigation Capital Management. LCM is a leading global litigation financier with significant expertise in international arbitration and cross-border disputes, including bilateral investment treaty claims over mineral resource assets.”
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This bit I find interesting as the gold price is significantly higher now which I would have thought would make it more attractive for GoR to pay Panthera off and allow them to move on with the development of the assets?
“A claim for compensation pursuant to the Treaty will involve an assessment of the market value of the Bhukia project immediately before the expropriation”
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I also found some background info on LCM:
LCM have over a 90% Successful Legal Outcome
Very few applications for financing get through LCM’s rigorous due diligence process and investment comity to funding, circa 1%
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Fasken:
“Growing companies need legal expertise spanning continents, industries and practices. Fasken provides solutions in all areas of law, for almost every industry and sector.
With a global presence and vast international experience, Fasken is trusted by clients around the world for strategic advice and representation on complex, cross-border and multijurisdicti
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