Major Credit Facility Expansion Accelerates Development at Iberia Belt West Project After Court Ruling

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1. Ownership and Share Structure Information

The information listed above was updated on the date this article was published and was compiled from information from the company and various other data providers.

Emerita Resources Corp. (EMO:TSX.V; EMOTF:OTCQB; LLJA:FSE) has secured TSX Venture Exchange approval for a revised credit agreement with Nebari Natural Resources Credit Fund II, LP, expanding the company's access to capital. The updated terms include a new fourth tranche, adding US$35 million to the facility and raising the total available to US$50 million. The funds are intended to advance the company's wholly owned Iberian Belt West (IBW) Project in southern Spain.

Emerita noted that access to each tranche remains at its discretion, contingent upon meeting specific conditions in the agreement. Nebari has waived its right to receive common share purchase warrants in connection with the newly added tranche.

Steven Bowles, Managing Director at Nebari, stated that Nebari "continues to believe in the potential of the IBW Project" and was "pleased to provide additional financing capacity of now up to US$50 million to the Emerita team." He added that IBW benefits from "growing resources, modest expected capital cost, and established local infrastructure all in a supportive mining jurisdiction."

David Gower, P.Geo., CEO of Emerita, said the company is actively moving IBW forward through the permitting and prefeasibility process, adding that the project has been further strengthened by new technical data, including drilling at El Cura and recent metallurgical progress, as well as strong metal prices.

Proceeds from the expanded facility will be used for exploration programs, engineering and permitting work, deposits on key equipment, and general corporate expenses.

In a separate disclosure, Emerita announced plans to petition the Administrative Court of Andalucia for a decision in the Aznalcollar public tender case. The project, a contested high-grade polymetallic deposit, remains the focus of an administrative legal proceeding. Emerita has opted not to appeal the recent criminal court ruling, instead prioritizing the civil case to pursue potential mining rights.

Canaccord Genuity analyst Dalton Baretto's most recent rating was Speculative Buy, with a price target of CA$2.50.

Following the trial outcome, Canaccord Genuity analyst Dalton Baretto commented on December 5, "We have made no change to our rating or target at this time." The most recent rating was Speculative Buy, with a price target of CA$2.50.

Gower stated that focusing on the civil court process aligns with the company's goal to secure the Aznalcollar development rights. Legal counsel continues to view the administrative case as strong, referencing evidence from the criminal trial pointing to irregularities in the tender process.

The company's legal filing argues that the awarded bidder, Minorbis-Grupo Mexico, did not meet the qualifying criteria and that the concession ultimately went to a different entity not involved in the initial bid. A ruling from the Administrative Court is expected within two to three months.

Resilient Demand and Resource Diversity Define Polymetallic Mining

Stockhead reported on December 2 that polymetallic deposits were gaining appeal due to their diversified metal exposure. Fergus Kiley said that when one metal underperforms, "copper might be the metal that's driving the mine economics or lead or zinc or silver," offering natural hedging for projects. He also emphasized the longevity of such assets, stating they "go on for kilometers into the ground."

InvestorNews added on December 17 that polymetallic resources are structured for efficiency. Nicole Brewster described one system as combining "nickel, cobalt, platinum and palladium" with "zinc, copper, silver and gold," allowing for flexibility in changing market conditions. Even partial discoveries could materially impact overall value, she noted.

Farmonaut's December 17 analysis expanded the view to global seabed resources. The report projected that "over 500 million tons of polymetallic nodules could be targeted globally for sustainable mineral extraction" by 2026, describing these nodules as a key component in supporting green energy technologies. The study highlighted their low environmental footprint compared to land-based mining.

Analysis Points to Undervalued Potential

A Clarus Securities report from October 23 offered a bullish assessment of Emerita's prospects. Analyst Varun Arora wrote that if Emerita were to prevail in the Aznalcollar case, it could add CA$700 to CA$1.2 billion to the company's market value. At the time, Clarus maintained a *Speculative Buy* rating and a CA$3.15 per share target price, based solely on existing assets outside of Aznalcollar.

Clarus estimated the Aznalcollar asset carried a CA$1.5 billion NPV5%, double that of Emerita's Iberian Belt West Project. Should the legal risk be removed, the firm projected a rerating scenario with a conceptual share price of up to CA$6 per share, citing strong infrastructure and significant silver leverage.

On December 8, Clarus reiterated its Speculative Buy rating but revised its target price to CA$1.50 per share. The update removed Aznalcollar from the valuation, focusing on IBW. Clarus stated that the market had overreacted to the criminal court verdict, which did not assess the legality of the public tender —  still under administrative review.

Varun Arora called the stock "oversold," citing Emerita's deep discount to peer valuations. Clarus projected a CA$1.0 billion NPV5% for IBW, supported by expected production of 220 million pounds of zinc equivalent annually, with over 55 percent of revenues tied to gold and silver.

Catalysts identified include an updated mineral resource in Q1 2026, a prefeasibility study in June, and an exploitation license decision expected later in the year. Arora also noted that the administrative ruling on Aznalcollar could still favor Emerita.

Shad Marquitz of Excelsior Prosperity added his view on December 15, calling Emerita a "special situation polymetallic copper-zinc-gold-silver-lead developer." He argued the recent sell-off was "totally illogical" in light of the underlying asset value. Marquitz noted that the stock remained attractively priced relative to defined resources and economic studies, making it one of his top picks during tax loss season.

Advancing Toward Execution at Iberian Belt West

Emerita's Iberian Belt West Project includes three advanced polymetallic deposits — La Romanera, El Cura, and La Infanta — across a 1,545-hectare property in the Iberian Pyrite Belt. The project is recognized as of Strategic Importance by Spanish authorities, according to the company's latest presentation, streamlining the permitting process.

IBW's most recent resource estimate (February 2025) outlined nearly 19 million tonnes Indicated and 6.8 million tonnes Inferred, with recoveries exceeding 80 percent for precious metals and 92.7 percent for copper in El Cura metallurgical tests.

A prefeasibility study is in progress, with completion expected in 2026. Near-term goals include advancing permitting and continuing drill programs at La Infanta and El Cura, with updated metallurgy also anticipated.

Emerita also holds early-stage projects in the region, including Nuevo Tintillo and Nueva Celti. Preliminary sampling at Nuevo Tintillo has returned up to 3.37 grams per tonne gold and 165 grams per tonne silver. 

Ownership and Share Structure¹

Management and insiders control 5.32% of the company, with Michael Lawrence Guy at 1.45%, David Patrick Gower at 1.3%, and Joaquin Merino-Marquez holding 1.04%.

Institutional ownership totals 1.12%, led by Merk Investments LLC at 0.99%.

The company has 289.12 million shares outstanding, of which 248.80 million are freely tradable. Emerita's market capitalization stands at CA$364.29 million, with shares trading between CA$0.56 and CA$2.00 over the last 52 weeks.