Emerita Resources Corp. (TSXV: EMO, OTCQX: EMOTF, FSE: LLJA) (“Emerita” or the “Company”) wishes to inform its stakeholders about a recent development concerning historical matters. The Ontario Securities Commission (the “OSC”) has filed an Application for Enforcement Proceeding against the Company and certain of its officers and directors, focusing on legacy projects.
Understanding the Allegations
It’s important to note that these allegations are currently unproven. The proceedings primarily relate to two historical projects:
- Plaza Norte Project (Spain): The OSC’s allegations concern the Company’s public disclosures regarding the Plaza Norte project from October 2017 to May 2023. This includes the status of permits, related regulatory and appeal developments, and Emerita’s interest in the project over time. Emerita had announced a shift in focus to the Iberian Belt West Project (“IBW Project”) in 2020 and subsequently confirmed it was no longer pursuing Plaza Norte in 2022.
- Falcon Litio MG Property (Brazil): Additionally, the OSC alleges that certain officers and directors misappropriated a corporate opportunity related to the Falcon Litio MG property in Brazil. There are also allegations that misleading information was provided by one officer and director during the OSC’s investigation into Falcon. Importantly, Emerita Resources Corp. itself is not a respondent to the allegations concerning the Falcon project. The Company previously disclosed in March 2021 its intention to wind down Brazilian subsidiaries to focus solely on Spanish assets.
Both Plaza Norte and Falcon are considered legacy projects and are not related to Emerita’s current core business and operations. They were previously assessed as having no relevance to the Company’s go-forward strategy.
Emerita’s Response and Actions
In response to the OSC application, Emerita has promptly established a Special Committee comprised of independent directors. This committee is tasked with directing the Company’s comprehensive review of and response to the allegations. The officers and directors named in the proceeding have also engaged their own legal counsel to defend against the allegations.
The Special Committee’s review of these matters is ongoing.
Commitment to Enhanced Governance and Future Focus
Since the time period to which these historical matters relate, Emerita has proactively made significant enhancements to its governance framework, disclosure controls, internal reporting processes, and related procedures. These improvements reflect our continuous commitment to transparency and best practices.
Emerita continues to operate its business as usual and remains steadfastly focused on advancing its core operations in Spain. Our primary focus since 2021 has been, and continues to be, the Iberian Belt West Project (IBW Project). We are confident in our strategic direction and ongoing operations, and are dedicated to executing our business plan. Key upcoming deliverables for the IBW Project include:
- An updated NI 43-101 Mineral Resource Estimate
- Public hearings as part of the approval process for the exploitation license
- Completion of a Pre-Feasibility Study
The Company is also actively pursuing a fair resolution of the Aznalcollar claims.
Looking Ahead
Emerita Resources remains committed to creating value for its shareholders through the responsible development of its current projects. We will continue to provide updates as appropriate regarding the OSC proceedings and our ongoing operational progress.
Source: Original Article
