Sam is a professional trader and the lead stock market news writer at AskTraders. After starting his career in the forex market, Sam now focuses on gold and stocks with a preference for fundamental and macroeconomic analysis.
Panthera Resources (LON: PAT) shares are rallying Friday morning on the news its subsidiary, Indo Gold Pty Limited (IGL), has entered into various agreements to acquire Metal Mining India Private Limited (MMI).
MMI is the company's joint venture partner in India regarding the Bhukia and Taregaon projects.
The company's ownership in the 2 projects will now increase to 100%— giving Panthera a 95% interest — if prospecting licences are granted in the future.
IGL will acquire all of MMI's shares and has secured cooperation from the former shareholders concerning a potential claim under the Australia-India Bilateral Investment Treaty.
Earlier this year, the company said its prospecting license rights at Bhukia were being “consistently frustrated” by the government of Rajasthan.
However, Fasken, Panthera's ABIT legal adviser, advises that a potential claim under the ABIT has legal merit, while there are ongoing discussions with several potential litigation funders to support a potential claim under the ABIT.
Panthera will pay A$1.82 million (£0.99 million) for the acquisition. A separate announcement said it would raise £780,000 at 10 pence per share to fund the deal.
Panthera shares are up 19.5% at 11.95p at the time of writing.
Panthera Resources shares are traded on the London stock exchange's AIM market (the alternative investment market), which is the submarket specifically for smaller companies. AIM stocks are attractive to investors as they have tax advantages and smaller companies have the potential to benefit from rapid growth. But are PAT shares the best buy? Our stock market analysts regularly review the market and share their picks for high growth companies
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