RE: Raj Court decision29 Apr 2025 09:22
I see here 16th May
London-listed Panthera Resources (ISIN GB00BD2B4L05, UK:PAT) provides a real learning opportunity. Aside from being a good case to educate yourself, it could also start to pay off handsomely between now and 16 May 2025.
The next litigation opportunity?
On 25 February 2025, Panthera Resources disclosed that it had just raised GBP 2.7m from investors. The placement was heavily oversubscribed, even though it had not been heavily publicised. Reportedly, investors only got about 35% of the amounts they subscribed for.
Panthera Resources is a company with a market cap of just GBP 24m and two nascent gold exploration projects in the less desirable parts of West Africa. Were investors eager to throw their money at early-stage gold projects in Mali? As far as mining is concerned, that country had recently made headlines for terrorists killing 25 gold mining employees in an ambush, as well as issuing an arrest warrant for an international gold mining CEO. It's hardly a tempting investment destination, at least for now.
What got investors excited wasn't Panthera Resources' gold prospects in West Africa, but an old legal claim against the Republic of India.
Aspects of this claim date back over 20 years, which is why the market had long forgotten about it.
In 2004, Panthera Resources and India signed an agreement for the company to prospect for gold in Bhukia in the Rajasthan region. Following its initial work, Panthera Resources located a potential 1.7m ounces – a remarkable find in its own right, and all the more remarkable given that the company had only prospected on 10% of the area. There were concrete indications to suspect that this could be a world-class gold mining district that extended far beyond the initial find.
Subsequently, the potential gold reserve turned out to be nearer to 7m ounces, putting Bhukia into the big league globally. However, Panthera Resources never got to develop and exploit the resource. The State of Rajasthan and the Republic of India didn't allow the company to follow through on the agreement they had signed – in effect, expropriating the company.
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