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Executives Accused of Hijacking Lithium Project
11 Apr
Summary
- Executives allegedly diverted lithium project rights to a new controlled company.
- Regulator claims this conduct defrauded Emerita Resources and its investors.
- Allegations also cover misleading statements about a Spanish zinc project.
Ontario's securities regulator has accused executives of Emerita Resources Corp. of diverting the company's lithium project rights to a new entity they controlled. The regulator alleges this action defrauded Emerita and its investors by channeling claims from the Falcon Project in Brazil to Lithium Ionic Corp.
Emerita's Chief Executive David Gower and other senior insiders allegedly misled the regulator regarding the project. Furthermore, these same executives, along with Emerita's president, are accused of approving untrue or misleading public statements concerning a Spanish zinc project, Plaza Norte, between 2017 and 2023.
Emerita Resources stated that it has formed a special committee to review the allegations, which it deems unproven. The company mentioned that Plaza Norte and Falcon are legacy projects not central to its current operations or strategy. A hearing on the matter is scheduled for May 8.
