Emerita Resources ( EMO.V ) is back at it again. You may remember it was the best performing stock on the Canadian markets a few years ago. At issue is Aznalcollar (AZN) , a very large, high grade previously operating VMS mine in Spain. As the well worn story goes, AZN suffered a catastrophic tailings dam failure in 1998, releasing 4-5 million cubic m of highly toxic sludge into the Guadiamar river. It was and still is to this day, the worst ecological disaster in Europe.
The subsequent closure of the Boliden run mine devastated the local economy, which to this day, desperately needs the mine to reopen. Fast forward to 2014-15, with memories of the disaster in the rear view mirror, the Spanish Government puts out a tender to reopen the mine as an underground operation, for the job starved mining comunity. Due to very low base metal prices and the publicity of the disaster, no major was interested.
Enter Emerita; with a 10,000 page technical masterpiece costing nearly 1 million dollars to prepare bid. They had only one competitor making it to the next round….MLF, a company formed a few weeks prior by 2 politically connected brothers with Zero mining experience and €3000 in capital to their name. Guess who loses.
As the story goes, just prior to the tender, one of the brothers pays the President of Emerita a “visit”….”Let’s partner” he allegedly says, “ I know someone who can guarantee the tender” indeed it was someone very high up in the goverment with the ”keys “ to the bid. A few minutes later, a phone call comes in for Emerita’s President Joaquin Merino. It is this Official, Vincente Fernandez, confirming the bid is a shoe in if he partners with the brothers.
Emerita refuses. The bid is lost. Emerita seeks justice, the UCO (investigating Police) agrees and lays charges…But, the case is turned away at every step…UNTIL..a few brave Superior Appellate Court Judges see the crimes and orders a trial, adding more charges and more defendants and more jail time. So now we are in court. This is a Big trial in Spain , and it is getting Much bigger. Spanish Vice President is involved it seems , and the Governing Party, the PSOE is implicated. The Government has a ”fixer” in the press. She has been busy it seems…It is being reported in Papers all across Spain, that she was putting out dirt on the sexual exploits of the UCO Chief (investigative Police) to discredit him, as well as putting out information to undermine Emerita’s image via her press connections, and to get the case turfed. There is a secret audio recording of her admitting to this, and it is being played all over Spain as we speak.
So what Frankie, who cares?… Well, if you are intersted in making money, You should care. Spanish Law codifies that IF a crime has been committed in a tender, the bid is automatically disqualified and the next qualified bidder gets the Prize... Emerita is the only other qualified bidder. This has been confirmed by Emerita’s Spanish Counsel many times.
In early July trial ends. People are likely going to jail. EMO is going to get the keys to ~45 million ton high grade copper/silver /zinc mine. 10 bagger likely…End of story…NOT!
Oh yes, the Spanish opposition Party, the PP, is going scorched earth with this, calling it ”Pure Mafia” and vowing to bring them all to account. It’s not a stretch to say that the Spanish Government could have a full blown crisis on it’s hands.
I invested in a great junior mining play, and got so so much more…Spanish Telenovelas are great …Pass the 🍿!!!
