Plaza Nueva, 8-B, 1º B 41001 Seville, Spain Emerita Resources Provides Update ON Plaza Norte Drilling and Aznalcollar Litigation
65 Queen Street West, Suite 800, Toronto, ON, Canada, M5H 2M5
Plaza Nueva, 8-B, 1º B 41001 Seville, Spain
EMERITA RESOURCES PROVIDES UPDATE ON PLAZA NORTE DRILLING AND AZNALCOLLAR
LITIGATION
Toronto, Ontario, May 3, 2019 – Emerita Resources Corp. (the “Company” or “Emerita”) (TSX-V:
EMO) along with its partner, Aldesa, announces that drilling is progressing on its Plaza Norte zinc
project (the “Project”) located in Cantabria, northern Spain (Figure 1). To date, two drill holes have
been completed on the Queveda target. Both drill holes h ave intersected significant intervals of
sphalerite (zinc mineralization) at the target horizon. The distance between the two drill holes is
approximately 300 meters. Samples have been submitted to the ALS Laboratory in Seville, Spain for
preparation and analysis. Results and complete details will be reported when they are received.
Figure 1: Plaza Norte zinc project in Cantabria, northern Spain.
The Honorable Miguel Angel Revilla, President of the Cantabria Region , along with government
officials from the Cantabria Region conducted a site visit to the Project and re- affirmed the
government’s strong support for the Project.
David Gower, P.Geo., CEO of Emerita, commented, “It is very important to have such strong support
from the government and the community in which we work. The Government of Cantabria has
65 Queen Street West, Suite 800, Toronto, ON, Canada, M5H 2M5
Plaza Nueva, 8-B, 1º B 41001 Seville, Spain
established a framework for responsible project development and permitting which provides a clear
process for companies investing in the region.”
Plaza Norte Drilling
Cantábrica del Zinc, Emerita’s and Aldesa’s joint venture company, initiated drilling on the Queveda
target last month (see press release dated March 18, 2019). The Quevada target is one of four
targets that have been identified by the Company based on historical drilling and other technical
information. It is characterized by several historical intercepts containing significant amounts of
sphalerite within a 1.3 km by 1.0 k m area (Figure 2). Mineralization is hosted within Lower
Cretaceous dolomitizied Urgonian limestones located about 3.0 km north of the past producing
Reocín mine.
Figure 2: Queveda Target
65 Queen Street West, Suite 800, Toronto, ON, Canada, M5H 2M5
Plaza Nueva, 8-B, 1º B 41001 Seville, Spain
Mineralization was intercepted by the Company over approximately 7 meters at a depth of 592
meters. The logged sequences in H ole 001 are very similar to what was described in an adjacent
hole that was drilled in the 1980s, with marker units and mineralized zones among other geological
characteristics at about the same depth. The mineralized zone consists of abundant sphalerite and
minor galena, with lesser marcasite and trace pyrite with dolomite as gangue. Replacement of host
dolomite, open space filling of fractures, and cementation of breccias are the principal mineralized
textures which are typical for this type of deposit.
Drill Hole 002 intersected 6 meters of sphalerite mineralization at a depth of 561.4 meters.
Mineralization is hosted by dolomite with honey coloured sphalerite filling voids, as breccia matrix,
veins, and locally displaying colloform texture. Samples have been shipped to the laboratory.
Assays are pending and results will be reported when received.
Drilling was at a rate of 60m per day, w ith excellent core recoveries estimated at 99%. Drill core
samples are split and half shipped to the ALS preparation lab in Seville, southern Spain. The other
half is retained in the core box and stored.
Aznalcollar Public Tender Litigation
In October 2016 , Emerita announced that the Provincial Court of Seville, an appellate court, had
ruled in favour of Emerita in its appeal of the lower court’s decision that there was not sufficient
evidence of a criminal act in the Aznalcóllar project tender process (See press release issued October
28, 2016).
The appeal was heard by four judges of the Provincial Court of Seville (the “Court”) who ruled
unanimously in Emerita’s favour in a 59 page judgement. The judges’ decision was based on:
i. competing bidder failed to submit the necessary documentation as required by the tender
process;
ii. a failure by the tender panel (the “Panel”) to consider the technical merits of the tender
bids; and
iii. granting the mining rights to the Aznalcóllar project to Los Frailes Mining, a company that
did not participate in the tender process, contravened applicable laws governing public
tenders in Spain.
The judges found that there was evidence of gross negligen ce and misconduct and indicated that
there may be evidence of possible corruption and prevarication. As such, the Court ordered the
criminal case against the Panel to be reopened.
65 Queen Street West, Suite 800, Toronto, ON, Canada, M5H 2M5
Plaza Nueva, 8-B, 1º B 41001 Seville, Spain
Emerita’s external Spanish legal counsel summarized the key findings from the Court’s ruling as
follows:
Deficiencies with the Bid by the Competing Bidder
The judges found that the bid submitted by the competing bidder should not have passed to the
second stage of the tender process. The relationship between Minorbis and Grupo Mexico was not
properly demonstrated in the documentation submitted to the Panel. Among other things, Grupo
Mexico never registered in Spain or with the Spanish consulate, which was a requirement of
participation in the Aznalcóllar tender. Further, Minorbis -Grupo Mexico never submitted the
necessary documentation demonstrating its solvency, which was a mandatory requirement
established in the tender process, as set out by the Panel. The Panel contradicted the tender
requirements by declaring that the Mino rbis-Grupo Mexico bid was submitted solely by Minorbis
and that Grupo Mexico had just provided technical and financial support. The Court determined
that this was not possible since Minorbis had been formed just 3 weeks prior to the deadline for
submission of the tender, and according to administrative law in Spain, a company participating in
a public tender has to demonstrate minimum experience and track record in that particular industry.
Failure to Consider the Technical Merits of the Tender Bids
The judges concluded that the Panel had failed to consider the technical details of the tender bids.
As an example, the Panel did not consider that Emerita’s bid contemplated double the investment
compared to Minorbis -Grupo Mexico’s bid. This decision f ailed to consider one of the principal
objectives of the tender process, promoting investment to the region and creating opportunities for
the community.
Minera Los Frailes did not Participate in the Tender Process
The judges concluded that awarding the Aznalcóllar project rights to Minera Los Frailes, a company
that never participated in the tender process, contravened the laws and regulations governing
public tenders in Spain. Although it is not clear if it was Minorbis or Minorbis -Grupo Mexico that
participated in the tender, the Aznalcóllar project was granted to Minera Los Frailes, a company that
was created after the completion of the tender process.
The Court concluded that there were numerous administrative irregularities of a serious nature
which occurred during both stages of the public tender process and as such the crime of
“Prevarication” could not be discounted. The judges ordered the case against the Panel be
reopened. This is a firm decision by the Court which cannot be appealed.
The Company’s external Spanish legal counsel has advised that under Spanish law, if it is found that
the awarding of a tender involves the commission of a crime, the tender is automatically awarded
to the next qualified bidder. In the Aznalcóllar tender, Emerita is the only qualified bidder.
65 Queen Street West, Suite 800, Toronto, ON, Canada, M5H 2M5
Plaza Nueva, 8-B, 1º B 41001 Seville, Spain
The Aznalcóllar project hosts the past producing Aznalcóllar and Los Frailes zinc-lead-silver deposits.
If awarded the tender, the Los Frailes deposit would be Emerita’s focus of development for
restarting mining o perations at the site. The local community is strongly supportive of an
environmentally and socially responsible approach to developing the site.
Following this very clear ruling, the panel of four judges instructed the lower court judge to re-open
the case. On March 12, 2019, the lower court judge re-iterated her position that she did not agree
with the upper court’s conclusions and indicated she would not proceed with the hearing. The facts
of the case have remained unchanged as previously described by the upper court (summarized
above and in a news release dated October 28, 2016). As a result, the lower court judge’s decision
been appealed by Emerita to the Provincial Court of Seville where the four judges who ruled
unanimously in Emerita’s favour in a comprehensive 59 page judgement will rule on the case again.
There have been further developments in the Andalusia Region in southern Spain since the
December election which resulted in the first change in government there since Spain became a
democracy. Representatives from Emerita are scheduled to meet with officials of the new
government in the coming week s. The new government was elected on an anti -corruption, pro-
business development platform.
Emerita remains committed to the acquisition and development of the Aznalcollar project for the
benefit of all stakeholders. As part of the initial public tender process , Emerita completed
comprehensive engineering and environmental studies and as such remains the group best
positioned to advance the project efficiently and with the highest environmental, health and safety
standards.
David Gower P.Geo., CEO of Emerita commented, “We are excited about the prospects for the
Company in 2019. We are drilling on an excellent project, with a strong partner at Plaza Norte. The
support we have received from the Government and Municipalities in Cantabria region is
exceptional. The political developments in Andalusia provide us with some confidence that the
disputes that have persisted for a number of years can now be resolved in a timely manner. With
the strong support of our shareholders , the Company will have a much improved capital structure
that is expected to be more attractive for future investors.”
Qualified Person
Joaquin Merino, P.Geo., is a “qualified person” as such term is defined in NI 43-101 and has reviewed
and approved the technical information included in this press release and has approved its
dissemination.
65 Queen Street West, Suite 800, Toronto, ON, Canada, M5H 2M5
Plaza Nueva, 8-B, 1º B 41001 Seville, Spain
About Emerita Resources Corp.
Emerita is a natural resource company engaged in the acquisition, exploration and development of
mineral properties with a primary focus on exploring in Spain and Brazil. The Company’s corporate
office and technical team are based in Sevilla, Spain with an administrative office in Toronto,
Canada.
For further information, contact:
Joaquin Merino
+34 (628) 1754 66 (Spain)
Helia Bento
+1 416 566 8179 (Toronto)
Cautionary Note Regarding Forward-looking Information
This press release contains “ forward-looking information ” within the meaning of applicable
Canadian securities legislation. Forward -looking information includes, without limitation,
statements regarding Loan, the Com pany’s ability to repay the Loan , the Company’s exploration
programs and the Company’s future plans. Generally, forward-looking information can be identified
by the use of forward -looking terminology such as “plans”, “expects” or “does not expect” , “is
expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not
anticipate”, or “ believes”, or variations of such words and phrases or state that certain actions,
events or results “ may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”.
Forward-looking information is subject to known and unknown risks, uncertainties and other factors
that may cause the actual results, level of activity, performance or achievements of Emerita, as the
case may be, to be ma terially different from those expressed or implied by such forward -looking
information, including but not limited to: general business, economic, competitive, geopolitical and
social uncertainties; the actual results of current exploration activities; risk s associated with
operation in foreign jurisdictions; ability to successfully integrate purchased properties or mining
rights awarded; foreign operations risks; and other risks inherent in the mining industry. Although
Emerita has attempted to identify imp ortant factors that could cause actual results to differ
materially from those contained in forward -looking information, there may be other factors that
cause results not to be as anticipated, estimated or intended. There can be no assurance that such
information will prove to be accurate, as actual results and future events could differ materially
from those anticipated in such statements. Accordingly, readers should not place undue reliance on
forward-looking information. Emerita does not undertake to upd ate any forward -looking
information, except in accordance with applicable securities laws.
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