21st Aug 2018 10:38
LONDON (Alliance News) - Shares in Panthera Resources PLC plunged on Tuesday as it noted that the government of Rajasthan has rejected the prospecting licence application made for the Bhukia joint venture in India by partner Metal Mines India Pvt Ltd.
Shares in the gold exploration and development company were down 25% at 2.82 pence on Tuesday.
The government rejected the application due to finding the reconnaissance permit granted to Metal Mines null and void as the licence application was filed under the name Metal Mining India Ltd but the permit given to Metal Mining India Pvt Ltd.
Other reasons for the rejection was a restriction in place for grant in Tribal Areas under a government order in 2000, and because the Geological Survey of India had reserved some of the land, and has expressed intentions to carry out G-2 level exploration.
Panthera Resources said its joint venture has an very strong base to launch a legal challenge against the Rajasthan government to deny his rights.
"I am immensely disappointed that, after working under a valid RP for three years and defining a resource, after 10 years of work on this permit, after having negotiated with the GoR an agreed plan for its grant, and after almost a year of positive feedback from the Principal Secretary of Mines, that the GoR has used all of the same issues that have been addressed and settled repeatedly at various times in the past as reasons to reject the PL application," said Managing Director Geoff Stanley.
"Panthera intends to move rapidly to further protect the JV's rights in the Courts of India, and will also be investigating recourse through bilateral treaties that exist between the UK and India and Australia and India," Stanley added.
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Panthera Res.