Polymetallic Miner Finds Breakthrough Resources in Iberian Belt

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Emerita Resources Corp. (EMO:TSX.V; EMOTF:OTCQB; LLJA:FSE) has announced the results of its annual and special meeting of shareholders held on June 19, 2025. All director nominees listed in the company's management proxy circular dated May 9, 2025, were elected to the board with over 93% shareholder approval. Shareholders also ratified the appointment of auditors and approved the company's stock option plan.

In the announcement, the company further disclosed a new services agreement with CanaCom Group, a marketing agency based in Oakville, Ontario. Under the terms of the agreement, CanaCom will provide digital content, marketing, and media distribution services over a 12-month term for a fee of CA$120,000 plus applicable taxes. The agreement includes the issuance of 200,000 stock options to CanaCom Group at an exercise price of US$1.28 per share, vesting quarterly over one year beginning 90 days after issuance. The stock option grant remains subject to TSX Venture Exchange approval.

Emerita stated that CanaCom Group, headed by Jordan Lutz, has no equity interest in the company aside from the granted options and maintains an arm's-length relationship with Emerita.

Base Metals Sector Overview

On the copper side, a report from Shad Marquitz on June 20 looked at how prices achieved two consecutive all-time highs within the past year, first reaching US$5.199 per pound in May 2024, and then surpassing that level at US$5.346 in March 2025. This trend was described as bullish by sector analysts. Despite the record highs, larger copper producers saw a muted response in equity markets, while junior developers showed stronger momentum. As of mid-June 2025, the Sprott Junior Copper Miners ETF (COPJ) reached a new 52-week high of US$25.50, reflecting a more active interest in exploration-stage companies.

According to a June 22 article by Jeffrey Neal Johnson, the silver sector has benefited from a confluence of industrial and macroeconomic factors that have positioned it as a compelling alternative to gold. Johnson wrote that "over half of all annual silver consumption is attributed to industrial applications," including solar photovoltaic cells and electric vehicles, which gives silver a dual identity as both an investment and an essential industrial metal. The market has also experienced "its fifth consecutive year of a structural supply deficit," creating a strong base for sustained pricing. In addition, expectations of interest rate cuts and a weakening U.S. dollar have bolstered silver's appeal as a precious metal investment. The article noted that "the Gold/Silver ratio . . . remains above historical averages," reinforcing the view that silver could be undervalued in relative terms.

Writing on June 23, Shad Marquitz of Excelsior Prosperity emphasized that no single factor has consistently driven the performance of precious metals, cautioning that "there is NOT a singular reason for gold's climb higher" over the past decade. He highlighted the complexity and ever-shifting narratives that have shaped gold and silver markets, ranging from safe haven demand, central bank activity, and macroeconomic signals to geopolitical conflicts and technical breakouts. Marquitz stated that silver and silver stocks began outperforming in May and June despite little consensus around a unifying catalyst, calling it a "catchup trade" following a long stretch of underperformance relative to gold. He also noted that from its January 2016 low to June 2025, the Global X Silver Miners ETF (SIL) increased 330%, nearly mirroring gold's performance, while silver itself advanced between 274% and 321% depending on the measured low point.

There are similar high points for zinc. According to a June 24 report from Market Research Intellect, the global zinc market was projected to reach US$30 billion in 2024 and is expected to grow at a compound annual growth rate of 5.5% through 2031. The report cited increasing demand from sectors such as construction, automotive, and industrial manufacturing, with zinc's role in galvanization and die-casting noted as major drivers of consumption. "Zinc demand continues to rise in the construction, automotive, and infrastructure sectors," the firm stated, adding that the market was anticipated to hit US$45 billion by the end of the forecast period.

The report also highlighted zinc's growing relevance in renewable energy and electric vehicle production, where zinc-based batteries have emerged as a sustainable energy storage solution. Market Research Intellect noted that "advancements in mining technologies and recycling efficiency are improving supply stability and reducing environmental impacts." Asia-Pacific was expected to lead the global market due to high consumption in China and India, with North America and Europe focusing on technological innovation.

Positioned for Polymetallic Growth: IBW and Beyond

According to the Emerita, their Iberian Belt West (IBW) project in southern Spain remains the company's primary focus, encompassing three high-grade polymetallic deposits — La Romanera, La Infanta, and El Cura.. The most recent mineral resource estimate, released in February 2025, reported an Indicated Resource of 18.96 million tonnes averaging 8.44% zinc equivalent (ZnEq) and an Inferred Resource of 6.80 million tonnes at 8.72% ZnEq.

The project has benefited from metallurgical advancements, including a post-flotation recovery process using the cyanide-free CLEVR technology. Test results show recoveries of up to 91.3% for zinc, 87.7% for copper, and 81.5% for gold at La Romanera. Additionally, El Cura has demonstrated recoveries of 92.7% for copper and 87.9% for zinc.

In Q1 2025, the project received a Declaration of Strategic Importance from the Junta of Andalusia, enabling an expedited permitting pathway. A pre-feasibility study is currently underway and is expected to be completed in late 2025. Environmental consultations are ongoing, and the company has outlined a development plan that includes surface facilities and mine infrastructure across all three deposits.

Exploration activities are also expanding. Emerita recently secured an exploration permit that increases the IBW land package from 1,545 hectares to 7,967 hectares, including historically mined areas with reported high-grade copper. Drilling at El Cura continues with four rigs active, and sampling from the Nuevo Tintillo area has returned values of up to 3.37 grams per tonne gold and 165 grams per tonne silver.

Separately, Emerita is awaiting a final court decision regarding the Aznalcóllar project, a past-producing open-pit zinc-lead-silver-copper mine. The company has proposed an underground development plan to extract high-grade zones with a reduced environmental footprint and potentially lower capital expenditures. The trial outcome is expected by mid-2025.

Clarus Cites Key Drivers Behind Resource Expansion

Clarus Securities reported on March 17 that Emerita Resources Corp.'s global mineral resource had grown by 37%, reaching 25.77 million tonnes at 8.51% zinc equivalent (ZnEq), adjusted for metallurgical recoveries. Analyst Varun Arora noted the update exceeded expectations, with the La Romanera deposit accounting for over 5 million tonnes of the increase and an improved ZnEq grade of 7.85%, up from 7.49%.

"We were only expecting approximately 2 million tonnes in resource growth and are pleasantly surprised by the significant increase of 33%," Arora stated. He attributed the expansion to step-out drilling that extended mineralization by 150 to 200 meters beneath the previously defined resource boundary, as well as revised recovery assumptions, particularly for gold.

The update also included a maiden mineral resource estimate for the El Cura deposit at 1.3 million tonnes, which fell short of Clarus's earlier expectation of 2 million tonnes. Arora attributed the difference to limited drill density but emphasized the deposit's high-grade profile, with a copper equivalent (CuEq) grade of 3.16% and a gold credit of 1.44 grams per tonne. Clarus estimated the resource could more than triple with further infill drilling.

Clarus maintained a Speculative Buy rating on Emerita and issued a target price of CA$3.15. The firm pointed to several upcoming catalysts, including the anticipated receipt of the environmental certificate for the Iberian Belt West project, continued drilling at El Cura and La Romanera, and the expected completion of a preliminary feasibility study in late Q3 or early Q4. Arora noted that ongoing progress in permitting and metallurgical optimization was positioning the project for further advancement in the Iberian Pyrite Belt. 

Ownership and Share Structure

According to Refinitiv, management and insiders own 5.32% of Emerita. Of those, Michael Lawrence Guy owns 1.45% of the company, David Patrick Gower owns 1.3%, and Joaquin Merino-Marquez owns 1.04%.

Institutions own 1.12% of the company, including Merk Investments LLC, with 0.99%.

According to Refinitiv, there are 263.52 million shares outstanding with 249.5 million free float traded shares, while the company has a market cap of CA$300.26 million and trades in a 52-week range of CA$0.38 and CA$2.00.