Lithium Ionic Files Statement of Defence, Crossclaim, Counterclaim and Third-Party Claim in Emerita Resources Litigation

Lithium Ionic Corp. filed a Statement of Defence, Crossclaim, Counterclaim, and Third-Party Claim in the Ontario Superior Court of Justice on November 2, 2026, responding to a lawsuit initiated by Emerita Resources Corp. on July 29, 2026. The company denies Emerita's claim, asserting that Emerita relinquished its interest in the Falcon Project, now part of the Bandeira Lithium Project, in December 2020 and publicly confirmed this relinquishment in 2021 and 2022.

Lithium Ionic initiated third-party claims against four current and former Emerita directors, alleging they approved misleading public disclosures regarding the relinquishment, and seeks contribution and indemnity for any potential liability. The filing outlines the timeline of the dispute, highlighting that Lithium Ionic's predecessor acquired the rights from MGLIT in mid-2021, went public in May 2022, and has since advanced the project to a Definitive Feasibility Study (DFS) stage.

Project status remains on track: Bandeira DFS (Sept 2025) shows 18.5-year mine life, $1.45B post-tax NPV8%, 61% IRR, and $191M initial CAPEX. Engineering is 65% complete. Offtake agreements with Yahua Group and Grand Chen secure 170,000 tpa at a $1,000/t floor price. The Salinas assets were sold to PLS for $37.5M in August 2026.

Lithium Ionic Corp. (LTH) filed a procedural response on November 5 to a legal claim initiated in July 2026. The filing does not introduce new financial data, operational milestones, or changes to the project's economic profile. The company’s counterclaim strategy aims to deter the plaintiff and shift liability, but it does not alter the fundamental development timeline or financing requirements for the Bandeira project.

Market expectations for litigation developments were already priced in following the Ontario Securities Commission enforcement proceedings in April 2026 and the initial claim in July 2026. The core investment thesis regarding Bandeira's technical and economic robustness remains unchanged.

Lithium Ionic Corp. (LTH) is a lithium development company focused on the 100%-owned Bandeira Lithium Project in Minas Gerais, Brazil, also known as the "Lithium Valley." The company’s flagship Bandeira project has completed its feasibility study as of September 2025 and is currently transitioning from engineering to execution.

The project hosts a measured and indicated resource of 27.3 million tonnes at 1.34% Li2O, alongside an inferred resource of 18.6 million tonnes at 1.34% Li2O. The feasibility study outlines an 18.5-year mine life with a post-tax NPV8% of $1.45 billion, an internal rate of return of 61%, initial capital expenditure of $191 million, and operating costs of $378 per tonne.

Engineering work is 65% complete as of June 2026, with long-lead equipment orders placed and portal requests for quotation issued. On the permitting front, the company received a favorable technical report from SEMAD in February 2025, while environmental permitting and community engagement efforts continue.

Commercially, Lithium Ionic has secured a five-year take-or-pay offtake agreement with Yahua Group and Grand Chen for 170,000 tonnes per annum at a $1,000 per tonne floor price. The company also holds a $20 million pre-payment facility and $20 million in royalty financing with Appian Capital. Additionally, the company sold the Salinas group to PLS for $37.5 million in August 2026, retaining a 2.0% royalty.