Panthera Resources' share price more than doubles on Galaxy partnership

Panthera Resources more than doubled in value on Thursday after the company formed a partnership with Galactic Gold Mines (Galaxy) on the Bhukia project in Rajasthan, India.

Panthera said Galaxy had agreed to purchase a 10% stake in its 100%-owned subsidiary Indo Gold for $1.25m and will seek to earn additional equity by providing ongoing support and services to advance the Bhukia JV project.

The Bhukia project is a gold deposit in the North of India which has the potential to be developed into a large, bulk-mineable open-pit operation, according to Panthera.

Geoff Stanley, managing director, said: "The transaction brings Indian capital to support the development of Bhukia, it provides key corporate, bureaucratic, technical and administrative capabilities in India, and allows IGL an opportunity to participate in Galaxy's BSE listing process, which is planned to commence next year."

In a statement, the AIM-traded company said the leaders of Galaxy have a wealth of experience and a wide array of connections and capabilities in the gold mining industry in India.

Furthermore, Galaxy's principal investor is Hunch Ventures and Investments, an Indian venture capital group with strong government, corporate and institutional connections to the mining industry in the country.

"Galaxy and Hunch's Indian legal and technical due diligence also provides strong validation of the strength of the Bhukia PL application and demonstrates a current valuation for Panthera's share of Bhukia that alone significantly exceeds the market capitalisation of Panthera," said Stanley.

Panthera Resources’ shares were up 141.54% at 3.14p at 1302 GMT.