Emerita Resources Corp. (EMO:TSX.V; EMOTF:OTCMKTS; LLJ:FSE) won a small victory that could strengthen its position with respect to the outcome of the legal dispute over the Aznalcóllar project in Spain, reported Research Capital Corp. analyst Adam Schatzker in a May 4 research note.
The issue entered the courts in 2015 after the Aznalcóllar project tender was awarded to Minorbis-Grupo Mexico rather than Emerita, and the latter appealed the decision.
Recently, at Emerita's request, the Andalusia administrative court agreed to postpone its hearing of the Aznalcóllar tender administrative case until the criminal case concerning the same issue was heard and resolved, Schatzker noted. A start date for the criminal proceeding has not been scheduled yet due to the court working through a COVID-caused case backlog.
Now that the two cases will be tried consecutively, the evidence used in the first one—the criminal case—may be used in the second—the administrative case—which should benefit Emerita.
"Emerita believed the administrative court should wait for the facts to be resolved by the criminal court where the evidence was compiled and that the evidence for both cases are essentially identical," Schatzker wrote.
The administrative court acknowledged the two cases are similar.
Schatzker commented that the administrative court's decision to wait seems logical. However, without knowing when the criminal case will be heard or its outcome, "it is difficult for us to make any concrete conclusions regarding both the criminal case or administrative case proceedings."
Research Capital has a Speculative Buy rating and a CA$4 per share target price on Emerita, which is trading now at around CA$1.70 per share.
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Disclosures for Research Capital Corp., Emerita Resources Corp., May 4, 2022
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Adam Schatzker has visited Emerita Resources Corp. in the past 18 months.
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