Business
Bhukia Auction
Bhukia Auction.
About this update from Panthera Resources Plc
[{"type":"text","content":"\n\nThe information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the UK Market Abuse Regulation\n \n26 June 2024\n \nPanthera Resources Plc\n(\"Panthera\" or the \"Company\")\n \nBhukia Auction\n \nGold exploration and development company Panthera Resources Plc (AIM: PAT), with assets in West Africa and India, provides the following update on the dispute with the Republic of India (\"India\") over the latter's breaches of its obligations under the 1999 Agreement between the Government of Australia and the Government of the Republic of India on the Promotion and Protection of Investments (the \"Treaty\") in relation to the Bhukia project.\n \nThe Company advises that the Government of Rajasthan (\"GoR\") has announced the preferred bidder with the 'Highest Final Price Offer' of 65.3% for a mining lease for the Bhukiya-Jagpura block. This follows the issuance of a notice by the GoR on 6 March 2024 inviting bids in the auction of a mining lease of the Bhukiya-Jagpura block, substantively covering the Bhukia project. \n \nCommentary\n \nThe 'Highest Final Price Offer' of 65.3%, as payable to the GoR, refers to the percentage of value of mineral despatched each month multiplied by the sale price of the mineral on the month of despatch as published by the Indian Bureau of Mines. We note that the Geological Survey of India (\"GSI\") has reported a mineral resource of 7.15 Moz of gold with a calculated inground value of US$16.7 billion based on the closing gold price of US$2,329/ounce on 24 June 2024.\n \nIn addition, in order for the preferred bidder to be considered the successful bidder and qualify for the grant of a mining lease, an upfront payment and a performance security (in the form of a bank guarantee) must be provided by the preferred bidder to the GoR as follows:\n \nUpfront Payment: approximately US$60 million (₹500 crore)\nPerformance Security: approximately US$60 million (₹500 crore)\n \nFrom the results of its earlier work at Bhukia, coupled with the evaluation of the subsequent GSI reports, the Company believes that the mineral resource potential of Bhukia signif...