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Emerita Resources (TSXV: EMO) this morning has indicated that they intend to appeal a decision made by the Junta de Andalucia to grant an exploitation license to Minera Los Frailes for the development of the Aznalcollar project.
The decision, announced Friday by Jorge Paradela, the Minister of Energy and Mines of Andalucia, is said to have no bearing on the outcome of the ongoing criminal trial related to the awarding of the Aznalcollar Public Tender. No members of Minera Los Frailes were present at the Friday press conference announcing the award, with the resolution granting the permit not yet published in any official gazette.
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Emerita has indicated that they intend to appeal the decision on the grounds that an ongoing criminal trial is ongoing that relates to the awarding of the public tender for Aznalcollar.
Emerita also added that since this is an administrative decision, the permit can be revoked or overturned, moves which particularly apply when there are several legal proceedings ongoing related to the public tender of the project. Ongoing litigation also has yet to be resolved in relation to the proposed discharge of water from the project as currently proposed by Minera Los Frailes, with the development of Aznalcollar unlikely with this litigation ongoing.
“The announcement by the Minister of Energy and Mines is unfortunate considering that a completion of the criminal trial related to awarding the Aznalcollar public tender is near and could force the disqualification of Minera Los Frailes’ bid. Emerita has complete confidence in the impartiality of the judges who are conducting the criminal trial, and whose hearings are due to be completed in July with the judges’ decisions to be rendered shortly thereafter,” commented Emerita Resources CEO David Gower.
READ: Emerita Resources Increases Indicated Resources By 35%, Inferred Resources By 44% In Latest Estimate
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The company added that in the event a ruling is made in favor of Emerita under the trial, that they reserve their right to pursue all legal remedies, including the right to seek compensation for damages.
The ongoing criminal trial is examining a total of 16 defendants on charges of alleged rigging of the Aznalcollar mining public tender, with accusations including influence peddling, fraud, and embezzlement. Those charged include members of the panel responsible for awarding the tender, as well as two owners of Minorbis SLU.
The latest accusations levelled in the media on Friday suggest that a “fixer” of the Spanish Socialist Workers Party was recorded blackmailing members of the federal police to avoid ongoing investigations into corruption, with those recordings having connections to the Aznalcollar case. The “fixer” is said to have undertaken a program to discredit Emerita and liberate senior government official Vincente Fernandez from the ongoing proceedings.
Emerita Resources last traded at $1.09 on the TSX Venture.
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