Canadian mining executives accused of hijacking Brazil lithium claims

The “Plaza Norte and Falcon [mines] are legacy projects and are not related to the company’s current core business and operations,” Emerita said. Photo by Dado Galdieri/BloombergArticle contentExecutives at Canadian minerals explorer Emerita Resources Corp. have been accused by Ontario’s securities regulator of diverting the firm’s lithium project rights to a new company they controlled.Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentThe Ontario Securities Commission alleges the group established Lithium Ionic Corp. to pursue mining claims from Emerita’s Falcon Project in Brazil, conduct that defrauded Emerita and its investors, according to a Friday statement from the regulator.Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.We apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Play VideoArticle contentArticle contentShares of Emerita fell as much as 38 per cent in Toronto to their lowest level in nearly five years after the release, while Lithium Ionic plunged as much as 45 per cent. Both Toronto-based companies are penny stocks, with market values below $175 million.Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentThe regulator alleges Emerita chief executive David Gower, Chairman Michael Lawrence Guy, chief financial officer Gregory Duras and corporate secretary Sergio Damian Lopez caused Emerita to say it had “relinquished” the Falcon Project, which was misleading, while senior insiders were actually pursuing the project through Lithium Ionic.Article contentFurther, Gower and Hélio Diniz, a director with Lithium Ionic, misled the OSC during the investigation regarding the project, the regulator alleged.Article contentThe OSC’s allegations also encompass a high-grade zinc project in Spain called Plaza Norte.Article contentThe regulator claims that Gower, Lopez, Duras and Emerita President Joaquin Merino-Marquez approved untrue or misleading statements about Plaza Norte in public filings from 2017 to 2023. Those statements concerned Emerita’s permit status and ownership interest in the joint venture behind the development.Article contentArticle contentEmerita said in its own statement late Thursday that it has established a special committee to review and respond to the OSC allegations, which it describes as “unproven.”Article content“Plaza Norte and Falcon are legacy projects and are not related to the company’s current core business and operations,” Emerita said. “Both projects were previously assessed as having no relevance to the company’s go-forward strategy.”Article contentLithium Ion said it’s not a respondent in the “regulatory matter” outlined by the OSC, and that no orders have been sought against it, according to a statement on Friday. The company has established a special committee of independent directors to oversee “communications and disclosure” relating to the issue, it added.Article contentThe companies did not respond to separate emails requesting further comment on behalf of the individuals named.Article contentA hearing is scheduled for May 8 in Toronto.Article content—With assistance from Doug Alexander.Article contentBloomberg.comArticle contentTrending Posthaste: Canadian dollar is being dumped from FX reserves at a record pace. What's going on? News Why timing the bottom of Canada's roller-coaster real estate market may be harder than you think Real Estate Subscriber only. 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