Panthera Resources allows term sheet with Galaxy to lapse
West Africa and India-focussed gold exploration and development company Panthera Resources announced on Tuesday that the term sheet with Galaxy Gold Mines had lapsed, effective 30 April.
The AIM-traded firm said that, following the recent changes to mining law in India, it had decided not to extend the term sheet with Galaxy.
It said its efforts were focused on pursuing its legal rights in India, and working with Fasken in preparation for a potential international arbitration under the Australia-India Bilateral Investment Treaty.
“On 20 December 2018, the company announced that Indo Gold (IGL), a subsidiary of Panthera, had entered into a binding term sheet with Galaxy,” the board explained in its statement.
“The term sheet was subsequently amended and extended to 16 December 2020 and 30 April 2021.”
Galaxy retained a 5% equity interest in IGL, with the remaining 95% interest held by Panthera.
“IGL holds Panthera's mining and other ownership interests in India, including any rights to the Bhukia Project,” the directors added.
At 1123 BST, shares in Panthera Resources were down 6.69% at 13.06p.