Panthera Resources plc (LON:PAT), the gold exploration and development company with assets in India and West Africa, has announced that it has entered into a new term sheet which extends the partnership entered into with Galaxy Gold Mines Pvt Limited as announced on 20 December 2018.
Unless further extended, the new term sheet with Galaxy will terminate on 16 December 2020.
Background
On 20 December 2018, the Company announced that Indo Gold Pty Ltd, a subsidiary of Panthera, had entered into a binding term sheet with Galaxy. The term sheet provided for:
1. The staged investment by Galaxy into IGL;
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;
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; and
4. IGL and Galaxy collaborating towards the potential listing of the Bhukia Project on the Bombay Stock Exchange.
Pursuant to the agreement with Galaxy, Galaxy has completed an initial investment of US$500,000 in IGL for a 5% interest. In addition, Galaxy has the option to invest a further US$750,000 in IGL, prior to 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.
Mark Bolton, Panthera Resources’ Managing Director said “The Company’s efforts, with the support of Galaxy, to secure the prospecting licence covering the Bhukia Project continue to gain momentum. In addition to providing relief for the impact of the Covid-19 on these activities, the extension reaffirms both parties commitment and belief that this key objective will be achieved.”
