8th Aug 2019 13:34
(Alliance News) - Gold mining company Panthera Resources PLC said Thursday that it has restructured a finance agreement with Republic Investment Management Pte Ltd, allowing for an immediate injection of GBP500,000.
The fundraise comes amid continued delays of a high court case in India the company sought after having its prospecting licence request for the Bhukia joint-venture rejected.
The company has agreed to issue Republic and its co-investors five million new shares at 10.00 pence each, amending the third tranche of the financing agreement.
Shares in Panthera were down 2.6% at 8.52 pence each in London on Thursday.
Initially, the third tranche would have seen Republic invest AUD2.7 million, or GBP1.5 million.
The newly agreed GBP500,000 investment is part of tranche 3A, Panthera said. Tranche 3B will be invested when the company receives approval to recommence exploration at Bhukia.
Aside from Republic's investment, the company has entered into a USD1.3 million financing agreement with Galactic Gold Mining Pvt Ltd in exchange for a 15% stake in Panthera's subsidiary Indo Gold Pty Ltd. Galactic initially made two USD250,000 million payments for a 10% holding and will invest another USD750,000 for a further 5% stake.
Panthera said tranche 3B of the Republic financing and the upcoming investment from Galactic will total USD1.8 million and will be utilised to help meet Bhukia's mining exploration target of 6.7 million ounces.
Managing Director Geoff Stanley said: "Panthera Resources has worked diligently to negotiate multiple financing options that are integrated with its project development requirements, particularly as they relate to India. This successful financing is an excellent example of the success that can be achieved with supportive shareholders who share the company's vision for value creation."
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