TSX-V-listed Lithium Ionic has reviewed a statement of claim filed by another Canadian miner Emerita Resources Corporation in the Ontario Superior Court of Justice on July 29, saying it disagrees with the allegations made against the company and that Lithium Ionic is the rightful owner of the Bandeira project, in Brazil.

The claim relates to the Falcon project, in Brazil, and certain mining claims that now form part of the Bandeira project.

Lithium Ionic explains the statement of claim principally concerns allegations made against former directors and officers of Emerita and Lithium Ionic, together with Falcon Metals, and also names Lithium Ionic and its subsidiary, MGLIT Empreendimentos, as a defendant.

Emerita claims to have an equitable interest in the Bandeira project and claims a constructive trust over securities in Lithium Ionic held by the former directors and officers.

Lithium Ionic clarifies that none of the current directors or officers of Lithium Ionic are named as defendants in the action and that the allegations contained in the statement of claim have not been proven.

Lithium Ionic intends to respond through the court process and will "vigorously protect its rights, assets and the interests of shareholders".

As the matter is now before the courts, Lithium Ionic says it does not intend to comment further on the substance of the allegations at this time, but remains committed to advancing Bandeira through engineering, permitting, commercial planning and construction readiness.

BACKGROUND

The Ontario Securities Commission (OSC) in April initiated enforcement proceedings alleging that specific former Emerita insiders breached fiduciary duties by setting up Lithium Ionic to acquire the Falcon project claims. Following this action, multiple executives and directors resigned from Lithium Ionic and Emerita.

Lithium Ionic in June advised of possible legal action from a group claiming to be significant shareholders of Canada-based but Spain-focused Emerita, which applied to the Ontario Superior Court of Justice for leave to start a lawsuit on behalf of Emerita against Lithium Ionic and others.

The directors who resigned from Lithium Ionic earlier this year include David Gower, Lawrence Guy and Hélios Diniz, as well as corporate secretary Damian Lopez.

The OSC announced enforcement proceedings against Emerita and five of its directors and officers related to alleged misconduct. The OSC alleges that Gower, Guy, Diniz and Lopez participated in actions which ultimately diverted lithium mining claims in Brazil, known as the Falcon project.

The Falcon project and Bandeira project are connected as certain mining claims originally designated under Falcon now form part of the Bandeira project.