Commodities
Home›Commodities›Mining›Emerita Resources sues Lithium Ionic in Ontario over B…
Emerita Resources sues Lithium Ionic in Ontario over Brazilian lithium assets
The lawsuit seeks an equitable interest and constructive trust tied to the Bandeira project, which is central to Lithium Ionic's near-term lithium production plan and is in final regulatory review.
Emerita Resources has filed a lawsuit in Ontario seeking a stake in Brazilian lithium assets that are at the center of a dispute with Lithium Ionic, according to Mining.com. The case was brought in Ontario Superior Court of Justice after earlier allegations by the Ontario Securities Commission that former mining executives diverted project rights from Emerita’s Falcon lithium project in Brazil to help establish Lithium Ionic.
Emerita is asking for an equitable interest and a constructive trust covering Bandeira project assets and certain Lithium Ionic securities held by former directors and officers. The filing follows April OSC proceedings tied to allegations involving multiple entities, and Mining.com notes the allegations have not been proven in court.
Lithium Ionic says the proceedings mainly concern former directors and officers of Emerita, Falcon Metals, Lithium Ionic and its Brazilian subsidiary, MGLIT Empreendimentos. The company said none of its current directors or officers are named in the action and that it will defend its rights, assets, and shareholders through the court process, without commenting further because the matter is before the courts.
The dispute could be material to Lithium Ionic’s strategy, as the Bandeira project is described as central to its goal to become a near-term lithium producer. Mining.com adds that the project is in the final stages of regulatory review and approval, and that a feasibility study completed last September outlined an 18.5-year mine life with capacity to produce 177,000 tonnes of spodumene concentrate annually.