Panthera Resources plc (LON:PAT), the gold exploration and development company with assets in India and West Africa, has announced that it has amended the term sheet with Galaxy Gold Mines Pvt Limited as announced on 17 June 2020. Pursuant to the amendment announced today and unless further extended, the Term Sheet will now terminate on 30 April 2021.
Background
On 20 December 2018, the Company announced that Indo Gold Pty Ltd (IGL), a subsidiary of Panthera, had entered into a binding term sheet with Galaxy. The Term Sheet was subsequently amended and replaced as announced on 17 June 2020. The Term Sheet provided for:
1. the staged investment by Galaxy into IGL, represented by a first stage of 5% (earned) and a subsequent stage of another 5% (as described below);
2. Galaxy providing administrative, legal, permitting and technical support in India that will allow it to potentially earn up to an additional 12% equity in IGL upon achieving certain success hurdles in the lead up to the commencement of mining at the Bhukia Project. These milestones include the grant of the Prospecting Licence and Mining Licence in regard to the Bhukia project;
3. Galaxy, at IGL’s election, may earn additional equity through providing drilling and logistic services upon the re-commencement of exploration at the Bhukia Project;
4. IGL and Galaxy collaborating towards the potential listing of the Bhukia Project on the Bombay Stock Exchange; and
5. The Term Sheet was due to terminate on 16 December 2020, now extended to 30 April 2021
Under the agreement, Galaxy has completed an initial investment of US$500,000 in IGL for a 5% interest. Also, Galaxy has the option to invest a further US$750,000 in IGL, before the re-commencement of exploration at the Bhukia Project, for a further 5% interest.
The present ownership of IGL comprises 95% held by Panthera and 5% held by Galaxy.
Further details of the agreement with Galaxy are detailed in the announcement on 20 December 2018 and 17 June 2020.
Mark Bolton, Managing Director said
“I’m pleased to announce that the term sheet with Galaxy has been extended, by mutual agreement, out to 30 April 2021. We have continued with our efforts in India to secure a prospecting licence covering our Bhukia Project, however, during the year, Covid-19 has impacted the operations of the Government of Rajasthan including the court system, requiring an extension to the existing arrangements with Galaxy.
In parallel with our efforts in India, the Company has continued to make tremendous progress in West Africa, expanding the portfolio, funding our activities and re-commencing field activities across multiple projects.
I look forward to proving further updates on the Bhukia Project and our West African portfolio in due course.”
