Merger and Acquisition Opportunities In The Mining Stocks – Part 16B
Excelsior Prosperity w/ Shad Marquitz (Written on 05-02-2026)
We are back with Part 16B, of this 2-part segment on recent merger and acquisition transactions within the mining stocks.
My intention was to get this out earlier this week, but my lady and I were traveling across the country, crossing 10 different states and we spent a number of days in remote areas of the wilderness. Thanks for your patience with the lull between these 2 parts on M&A, and we’ll be back tomorrow night with a solid update across a number of commodities.
Again… it is not actually important if you are specifically invested or involved with any of these merger or acquisition deals to still find these transactions instructive.
We can analyze these transactions that the market gives us and still take from them valuable investing strategies. We can then apply these ideas to other companies that are also likely in the M&A crosshairs.
We can analyze the motivations behind why these deals were made, what the larger acquirers are actually looking for, and what they’re willing to pay for those projects.
We can consider where the acquirers may be going hunting next or what types of companies they may be filtering for in future transactions…
In part 16A we covered 5 different acquisitions, of which 3 involved smaller junior companies merging into larger companies, and 2 were project acquisitions.
Dual acquisition of both Rupert Resources and Aurion Resources by Agnico Eagle
Acquisition of the Condoryacu Project by AbraSilver Resource
Dual acquisition of both Star Royalties and the NSR on the Saddle Project by Summit Royalties
In this article we’ll be reviewing an assortment of 3 more M&A deals that haven’t received a lot of mainstream press, but that are still instructive in various ways.
The acquisition of the Pampas Project by Silver X
Acquisition of the Goldstrike Project by Heliostar Metals from Liberty Gold
2nd acquisition offer for Emerita Resources by Denarius Metals
I really wanted to also get to these 2 other previously mentioned M&A deals, but just don’t have the space in this article or the personal bandwidth for their deep dives.
Orezone acquisition of the Casa Berardi Gold Mine from Hecla Mining
Acquisition of G2 Goldfields by G Mining Ventures
I’ll just briefly say that both deals made a lot of sense based around jurisdictional considerations. Orezone is diversifying their jurisdiction exposure outside of Burkina Faso and into Quebec, Canada; whereas G Mining is consolidating their jurisdictional footprint inside of Guyana. They are both solid mid-tier producers and these are complimentary bolt-on transactions that should be value accretive longer-term.
The other 3 transactions involving 5 junior resource companies, that we’ll now dive into, directly relate to 4 companies currently held in the portfolio here, (and the 5th company used to be a portfolio position and may become one again). There are quite a few more quirks and perks involved in these M&A transactions to unpack.
So, let’s get into it…
We’ll kick things off with the acquisition of a nearby silver project adding to the exploration and development inventory of projects held in Peru by a growth-oriented silver stock that we’ve reviewed quite a bit on this channel over the last couple of years – Silver X Mining Corp. (TSX-V: AGX) (OTCQB: AGXPF) (F: AGX).
Silver X Acquires the High-Grade Pampas Gold-Silver Project, Expanding its Precious Metal Asset Base in Peru - March 24, 2026
Silver X to acquire the 7,712.5-hectare Pampas Gold-Silver Project in Huancavelica, Peru, adding a new high-grade exploration asset to its precious metals portfolio.
High grades: Historical rock chip samples returned up to 85.9 g/t gold and 1,065 g/t silver.
District-scale system: 36 mapped gold-silver veins with strike lengths of up to 2,000 metres across a large epithermal system.
Major exploration upside: Despite extensive historical work, the project has never been systematically drill tested, with an initial 5,000 m drill program planned.
CEO Statement – 2026 Vision Alignment (bolded passages are my emphasis)
José M. Garcia, CEO of Silver X, commented: “Pampas is exactly the type of asset we want to add to the Silver X portfolio — high grade, district scale and located in the same mining belt where we are already operating.”
“What makes Pampas particularly notable is the combination of strong historical grades and a system that has never been systematically drilled. With values reaching 85 grams per tonne gold and over 1,000 grams per tonne silver, Pampas clearly demonstrates the strength of the mineralizing system and the potential to host higher-grade zones.”
“Strategically, this acquisition strengthens our asset base in Peru and complements our producing Nueva Recuperada operation. Pampas adds a new district-scale exploration opportunity with significant discovery potential within the same prospective mining belt.”
“Our goal is simple: build Silver X into a high-grade, multi-asset precious metals company. With production already underway at Nueva Recuperada and new district-scale exploration opportunities emerging at Pampas, we believe we are building a platform capable of generating long-term growth and discovery.”
On April 17, 2026, over at the KE Report, José M. García, CEO and Director of Silver X Mining joined me for a comprehensive update highlighting recent announcements on:
Q1 production metrics, and an overview of their aggressive multi-year growth plan to increase throughput levels from the Tangana Mine silver production and via increases to the plant capacity of the Recuperada Plant and construction of a 2nd Tangana Plant.
In tandem to those workstreams, their team has ongoing development and exploration work programs at both the Plata Mine and Red Silver Mine areas for new production to begin about a year out which will augment the consolidated production at their Nueva Recuperada Project, located in central Peru. There is an ongoing 40,000 meter drill program that kicked off last fall.
We also review the accretive acquisition of the Pampas Gold-Silver Project, located a little over 30kms away from Nueva Recuperada; and how it will factor into upcoming exploration initiatives, and the future development and production pipeline for the Company.
Silver X Mining – Q1 Production Metrics, Multi-Year Growth Strategy, Pampas Project Acquisition, Ongoing 40,000m Drill Program
Silver X weekly chart:
(AGX.V) moved up 14X from the March 2025 low of $0.115 to the January 2026 high of $1.61, which was a long overdue rerating off a ridiculously low level.
We hear the adage all the time that: “Small mines will only make you small money where big mines can make you big money, and big mines have the scale to bail out any issues.”
Clearly these types of sweeping investment idioms need to be taken with a huge grain of salt and are not always true.
Size and scale didn’t bail out Ascot Resources and their Premier Mine in the Golden Triangle from failing, nor did it prevent the Jerritt Canyon Mine in Nevada from being in a lemon in the First Majestic portfolio for a few years until just recently, now that they plan to finally restart this mine into this higher metals’ price environment.
Sure smaller mines and junior producers can have problems that totally take them out of the game in a bearish or tough metals price environment, or if there is a challenge in the resource reconciliation or an operational snafu. Yes, some may even become too distressed to continue forward- This isn’t an easy business and there a plethora of problems that can befall an operation.
However, junior producers with small mines can also conversely improve the most on an operations basis; quarter-over-quarter or year-over-year, causing sudden and dramatic reratings to higher levels… like what we’ve seen in Silver X, or Avino Silver and Gold, or Santacruz Silver, or Endeavour Silver, or Guanajuato Silver, or Americas Gold and Silver… just to name a few.
Growth-oriented junior and mid-tier gold and silver producers, like the ones we’ve covered on this channel the last couple years, have clearly outperformed the sector ETFs and most of the senior producers.
We’ve demonstrated on this channel over and over again that it is actually the small mines that can move the most producing the largest investor gains in a bull market scenario, because their margins expand so much more on a percentage basis. Sure the #BestOfTheBest will do quite well in a bull market, but the #BestOfTheRest in the junior to mid-tier producers will typically trounce the returns of the “safer” stalwart names in the sector.
Yes, there is more risk in junior producers, but also the corresponding more returns in a bull market scenario.
Torque cuts both directions though, so these same outperformers to the upside will also be outperformers to the downside during sector corrections.
(AGX.V) crashed by over 63% in just 2 months from the $1.61 peak to the March 2026 low of $0.59. This was a fairly large overreaction to the downside, considering that silver prices are still north of $70, and all the fundamental value drivers for the Company are more compelling today than they were last year.
Pricing in (AGX.V) went down to test the 50-week Exponential Moving Average, and bounced from there but is now pulling back towards this level. Bulls will want to see pricing keep consolidating above this support level {currently at $0.68}.
Clearly this company is leveraged to the price direction of silver, but eventually the market will wake up to the multi-year growth plan the company has to continue to raise both the throughput and grade profile through 2029.
With regards to M&A prowess, Heliostar Metals Ltd. (TSX.V: HSTR, OTCQX: HSTXF, FRA: RGG1) has continued to impress the markets with accretive transactions over the last few years. Sure… sometimes the markets have been slow to realize the potential of these acquisitions at first blush; but over time the company has rerated higher on the back of each of these deals as the value was demonstrated and begun to be unlocked by this growth-oriented management team.
First, back in late 2022, Heliostar announced the acquisition of both the Ana Paula Project and option on the San Antonio Project from Argonaut Gold.
On December 5th, 2022 Heliostar entered into definitive agreements with Argonaut Gold to acquire the Ana Paula Gold Project and option on the San Antonio Gold Project in Mexico.
Ana Paula is permitted for an open pit mine with measured and indicated (M&I) mineral resources of 1.46 Moz gold at 2.17 g/t gold and 3.27 Moz silver at 4.8 g/t silver. [Ana Paula is larger than this now, but that was the press release info in 2022]
San Antonio is a high-grade oxide resource containing M&I mineral resources of 1.73 Moz of gold grading 0.83 g/t gold.
Then during the 2024 raid on Argonaut’s assets, while Alamos Gold was scooping up Magino, and Integra was picking off the Florida Canyon Mine, Heliostar came in and picked up the past producing La Colorada and San Augustin open-pit heap-leach mines, as well as the development-stage Cerro de Gallo Project and the full ownership of the San Antonio project (previously they just had the option with Argonaut on San Antonio – not that it has mattered or shown up in their valuation yet for that matter. Both Cerro de Gallo and San Antonio and are quite underappreciated by the market and they are fantastic sleeper development projects that are going to eventually surprise resource investors and analysts in the future).
Heliostar Announces Closing of Acquisition of Producing Mines and Development Projects in Mexico
On November 8, 2024 the Company announced the acquisition of a 100% interest in all of Florida Canyon Gold Inc.’s (“FCGI”) mining assets in Mexico for cash consideration of US$5,000,000. The assets include the San Agustin mine (formerly the El Castillo Complex), La Colorada mine, Cerro del Gallo project, and San Antonio project.
Now here in early 2026 Heliostar announced the acquisition of the Goldstrike Project from Liberty Gold and just closed on this transaction earlier this week.
Heliostar Announces Closing of the Acquisition of the Goldstrike Project in Utah
April 27, 2026 – Heliostar Metals announced that, further to its news release dated March 23, 2026, it has completed the acquisition of a 100% interest in the Goldstrike project located in Utah, USA from Liberty Gold Corp. Initial consideration consists of US$10.0 million in cash plus 1,593,213 shares of the Company, with additional staged payments totaling US$60.0 million over the next five years.
Heliostar will be publishing an updated technical report next month to support the updated Mineral Resource of 975,000 Indicated gold ounces at 0.46 grams per tonne (“g/t”) plus 90,000 Inferred gold ounces at 0.31 g/t announced on March 24, 2026. The Company will evaluate potential strategic options for the Goldstrike Project, including, but not limited to, sequencing development within the Company’s existing growth project pipeline and the use of special purpose vehicles to separate gold and critical minerals value streams. Future development work will focus on resource expansion, investigating the full potential of Antimony Ridge, and confirming the processing and infrastructure plans.
On March 23rd over at the KE Report, Charles Funk, President and CEO of Heliostar Metals joined Cory Fleck to focus on the 2025 financial results and the acquisition of the Goldstrike deposit in Utah. Detailed insights are provided for the strategic purchase of the 1-million-ounce Goldstrike deposit in Utah from Liberty Gold, including the attractive acquisition terms and diversification into the US.
{the hotlink below should take you right to that part of the interview regarding the acquisition of Goldstrike}
Heliostar – Record 2025 Financial Results and the Strategic Acquisition of the 1M Ounce Goldstrike Deposit
In listening to the way Charles framed this acquisition in the interview above, it would seem they envision spinning this asset out along with Unga, their original flagship in Alaska a few years ago, to isolate the Mexican operations.
Regardless, they have optionality on how to explore and eventually exploit the value of both the gold and antimony assets in Utah and Alaska, all while keeping the main thing… the main thing in Mexico.
Heliostar (HSTR.V) - weekly chart
(HSTR) moved up 13.88X from the June 2024 low of $0.25 to the January 2026 high of $3.47.
Oh look, another small junior producer with outsized gains over the last couple of years. Did the big boys go up nearly 13X-14X over that period of time? (nope)
(HSTR) crashed by 49.5% in the next 2 months from the January 2026 peak at $3.47 to the March 2026 low of $1.75. (again torque cuts both ways)
(HSTR) closed Friday at $2.17 and is essentially back down testing the 50-week EMA {currently at $2.07}.
On March 23rd, Jon Gilligan, President and CEO of Liberty Gold (TSX:LGD; OTCQX:LGDTF), joined me for a comprehensive update on their 2 non-core project divestments. Divesting these projects allowed their team to focus on the development and derisking work leading to an upcoming Feasibility Study, engineering work streams, permitting, and other future value drivers; with a move towards a construction decision in 2 years at the open-pit, heap leach Black Pine Gold Project in the Great Basin in southeastern Idaho.
Liberty Gold – Sale of Gage and Goldstrike Projects – Alignment of State Permitting With Federal FAST-41 Permitting For The Black Pine Project
We start reviewing the divestment of both the Gage Project and Goldstrike Project during the month of March:
On March 18, 2026 the Company announced that it had entered into an asset purchase agreement with Blue Moon Metals Inc., to sell interests in certain unpatented critical minerals focused mining claims and School and Institutional Lands Administration (“SITLA”) leases in southern Utah (collectively, the “Gage Project”) for consideration of 420,935 common shares in Blue Moon plus a 2.0% net smelter return royalty.
[technically this is 4th M&A deal and a 6th company in the mix here in this article]
On March 23, 202613 the Company announced that it had entered into a definitive share purchase agreement to sell the issued and outstanding shares of the subsidiary, Specialty American Metals Inc., that owns Goldstrike Project in Utah to Heliostar Metals Ltd. for $72.5 million in total consideration. This is comprised of 1.6 million Heliostar common shares valued at approximately $2.5 million on closing of the Goldstrike Transaction, and then series of cash payments over different times and stage-gate achievements.
Liberty Gold (LGD.TO) - weekly chart:
(LGD.TO) went up ~6.8X from the April 2025 low at $0.26 to the April 2026 high of $1.77. That’s a pretty solid move for a developer, as overall the developers have been sleepier in this metals cycle than in prior ones.
Liberty Gold has stayed more technically strong than most of the junior PM stocks over the course of 2026, due to the strong fundamental factors at play.
Since this article is centered on M&A: My expectation is that once the upcoming Feasibility Study is published and the final permits are in hand, then a larger mid-tier producer will likely come in and acquire the company for their open-pit, heap leach Black Pine Gold Project in the Great Basin in southeastern Idaho.
Even though this stock has run a lot, those big 2 catalysts of an economic study and final permit should cause this stock to rerate even further to the upside.
Then a takeover premium at that point would be icing on the cake for any investors that have been following along for the ride in this stock over the last 2 years.
Now let’s turn our attention to an interesting potential consolidation of 2 different junior polymetallic base-metals and precious metals developers in Spain. Over the last few weeks we’ve seen the news about a 2nd offer by Denarius Metals Corp. (Cboe CA: DMET) (OTCQX: DNRSF) for the acquisition of Emerita Resources Corp. (TSX-V: EMO; OTCQX: EMOTF; FSE: LLJA).
To be clear, Denarius is currently a junior producing company from its Zancudo Gold-Silver Project in Colombia; but as it relates their 3 other projects in Spain, everything is still at the development stage.
Denarius Metals operates four projects across Colombia and Spain, including the Zancudo gold‑silver project in Colombia, which is now in production, and the Aguablanca nickel‑copper, Lomero polymetallic, and Toral zinc‑lead‑silver projects in Spain. Two of these projects, Aguablanca and Lomero, are located near IBW, Emerita’s principal project.
The concept behind this merger is that Emerita’s Iberian Belt West Project (IBW) could be developed and processed at Denarius’s 5,000 tonnes per day Aguablanca Project processing plant, which used to be in production at the Aguablanca nickel-copper mine, located in Monesterio, Extremadura.
On the surface, this actually makes a lot of logical sense, and there are true synergies here between the projects and 2 companies.
Polymetallic projects are difficult to forecast due to metallurgical recoveries in various concentrates versus just doing a bulk concentrate and looking as those tradeoff studies. Both companies have done a lot of solid met testing and have good relationships with metals smelters and processors, where teaming up could be a win-win for all parties in a development scenario.
However… many market participants see this as an opportunistic transaction from the Denarius side of the equation, pouncing on a takeover while Emerita’s share price and valuation have tanked on other unrelated issues to their flagship IBW project.
I’d point out that is precisely when acquiring companies get more interested — when they see a market disconnect that they can capitalize on. In that sense this is likely just savvy business negotiating from Serafino’s perspective and not really a surprise. [I’m actually more surprised when companies with the means to do so don’t pounce on more companies when they are distressed. Everybody wants a good deal, including the acquiring company.]
As a result of the offer coming when Emerita is so undervalued, then the 2 shareholder bases are quite emotional, and taking swipes at the other side.
In reading over dialogue in various chat rooms and speaking with investors in both companies, neither side of retail investors are fully appreciating the value of the other company or the potential synergies in combining both companies.
DENARIUS METALS ANNOUNCES INCREASED PROPOSAL TO ACQUIRE EMERITA RESOURCES CORP. - April 21, 2026
https://denariusmetals.com/denarius-metals-announces-increased-proposal-to-ac-13520/
Increased all‑share proposal to acquire Emerita Resources at CA$0.45 per share, implying an approximate 73% premium to Emerita’s closing price on April 10, 2026.
Compelling and certain value proposition for Emerita shareholders compared to a standalone development trajectory.
Strategic combination of adjacent Iberian Pyrite Belt assets with existing production, infrastructure, and operating expertise.
Serafino Iacono, Executive Chairman of Denarius Metals, stated “This increased Proposal reflects our conviction in the quality of Emerita’s assets and the compelling strategic fit with Denarius Metals’ existing Spanish operations. We believe this is a full and fair offer that delivers immediate value to Emerita shareholders, particularly at a time when clarity, certainty, and experienced operators matter most. Our team has demonstrated the ability to advance projects into production, and we are prepared to engage constructively to complete a transaction that benefits all stakeholders.”
Denarius Metals believes the increased Proposal offers Emerita shareholders a compelling and certain path to value relative to a standalone development trajectory. After mulling that idea over, it does make sense to use an existing plant versus trying to permit and build a new one.
The combined company would benefit from Denarius Metals’ existing production profile, infrastructure, and regional operating expertise in Spain, while accelerating the development timeline of Emerita’s Iberian Pyrite Belt projects.
This really is one of the more complex and somewhat messy situations I’ve seen in a while because Emerita is going through all kinds of both good and concerning news all at the same time. As a result their shareprice has been in flux for some time now, and many Emerita shareholders don’t believe the current valuation is anywhere close to where Emerita should be valued just on IBW alone.
Let’s start off with the positive catalysts on tap for this year at IBW, that still have the potential for rerating this company much higher, and have not been properly factored into the valuation of the company at present.
Emerita has planned for an updated resource estimate at IBW, incorporating all 3 deposits (La Romanera, El Cura, and La Infanta).
Management will then incorporate a series of advanced metallurgical studies, focused on improving the precious metals recoveries, along with the new combined resource estimate into an upcoming Pre-Feasibility Study (PFS).
This new economic study is expected to be a major company catalyst, tying together an enhanced development scenario from all 3 deposits. The previous economic study was based on just La Romanera and La Infanta, but now that El Cura deposit, located in the middle of the other 2 deposits, is also exploitable, then this all changes the development and mining strategy
More drill results were just released from the El Cura area of the project, and additional results are still pending.
Keep in mind all those catalysts and upcoming milestones are just centered around their flagship IBW Project. The issue in the present valuation arises because there are 4 other projects outside of IBW causing waves of both hope and doubt, complicating their valuation at present.
The last interview I was able to schedule with Emerita was back on December 10th of 2025 with CEO David Gower. We reviewed the news out to the market on December 5th with regards to what the criminal court decision in Spain had been with regards to Aznalcóllar, how the actual decision on the bid tender being awarded on the Project still comes down to the administrative court.
We then dove into the value proposition on their flagship IBW project, the recent acquisition of the expanded San Antonio Project, and the earlier-stage but large and prospective Nuevo Tintillo exploration project.
Emerita Resources – The Aznalcóllar Tender Still Awaits The Administrative Court Decision – The Value Proposition Of IBW, San Antonio, and Nuevo Tintillo
https://www.kereport.com/2025/12/10/emerita-resources-the-aznalcollar-tender-still-awaits-the-administrative-court-decision-the-value-proposition-of-ibw-san-antonio-and-nuevo-tintillo/
On the positive side, the company is going to be exploring on their large earlier-stage Neuvo Tintillo Project, strategically located in between prior producing and development-stage projects in this same mineralized belt. There was slated to be a drill program commencing in the 2nd half of 2026 that many (including me) were quite interested in following.
Also on the positive side, Emerita just acquired 2 new properties a few months ago (speaking of M&A), cumulatively referred to as the San Antonio Project. This larger project substantially increased Emerita’s wholly owned Iberian Pyrite Belt holdings; taking the Company’s total mineral property holdings in the IBW area to 8,144 hectares. In speaking with the company management the end of last year, their exploration team has been very excited to test these newly acquired properties for the potential of new discoveries.
Then there is the wildcard and somewhat binary outcome of how the administrative court in Spain rules on a long-disputed legal challenge as to how the tender was initially awarded on the Aznalcóllar Project back in 2015. This process has bubbled up into quite the media spectacle over the last couple of years, with investors speculating on what the awarding of this project to Emerita could mean, and vice versa. There is so much market noise around this, that in many ways this process has overshadowed all the work advancing IBW.
While the company did not get a favorable ruling in the criminal court on the corruption charges that it was seeking (which would have automatically disqualified the company that was initially awarded the contract), the decision ultimately still rests with the administrative court.
We’ve discussed in the past that the valuation of the company sold off so hard on this Aznalcóllar Project drama, that the current market cap now severely undercuts the obvious value in IBW (even before the new resource update and economic studies are incorporated).
The constant back and forth from sector pundits on this Aznalcóllar Project tender also obfuscates the additional value from either San Antonio or Neuvo Tintillo projects (which are currently receiving no value at all in the current company market cap)
Yes, of course, the awarding of the Aznalcóllar Project would be a huge boon to Emerita, but again, they have 3 other projects and IBW is still their flagship project that more than underpins their current valuation.
If that wasn’t already complicated enough…. the Ontario Securities Commission (the “OSC”) has filed an Application for Enforcement Proceeding against the Company and certain of its officers and directors concerning historical matters involving legacy projects.
There were some old lithium claims in Brazil that were spun out into Lithium Ionic Corp. (TSXV: LTH; OTCQX: LTHCF; FSE: H3N) before I even started following Emerita Resources in earnest.
I was aware of the divestment of those assets on the periphery, but don’t personally know much about these assets, and honestly don’t care about them, as they’ve never been part of my investing thesis. From my understanding they were non-core and a distraction at the time they were spun out in 2023.
Companies spin out non-core assets all the time, and it is incredibly rare to come back years later and claim management knew they were more valuable and make a big case out of it, just because the new spinco had success.
However, now these prior assets have resurfaced in a legal snare, with some investors and now the OSC claiming that they didn’t get properly evaluated by the company before being jettisoned out as noncore into the spinco. I don’t know all the details in those regards, and will simply wait to see how the ruling goes, but those Brazilian lithium claims are totally a side-tangent to the investing thesis here for polymetallic deposits in Spain. The company realized that a few years ago and spun them out accordingly.
The timing of these OSC claims coming now, after all the national media attention in Spain regarding government corruption charges around Aznalcóllar, is a bit suspect. It seems quite odd to wait 3 years after the spinout and decide to act on it now, when so many other things going on all at the same time. It likely complicates the confidence in Emerita in Spain if Canadian securities regulators are going after them.
Again, those Brazilian lithium projects were spun out at the time with hardly any pushback from Emerita investors, because they were not core to their strategy in Spain. The fact that people are calling foul now, after several years of work from Lithium Ionic to derisk those projects, is somewhat puzzling.
Emerita Resources Corp. Discloses OSC Application for Enforcement Proceeding Regarding Historical Matters - April 09, 2026
The OSC also alleges that certain of the Company’s officers and directors misappropriated a corporate opportunity related to the Falcon Litio MG property in Brazil (“Falcon”).
The OSC also alleges that misleading information was provided by one officer and director during the OSC’s investigation into Falcon. Emerita is not a respondent to the allegations regarding Falcon. The Company disclosed in its MD&A for the period ending March 31st 2021 that it was winding down its subsidiaries in Brazil and was solely focused on its assets in Spain.
Plaza Norte and Falcon are legacy projects and are not related to the Company’s current core business and operations. Both projects were previously assessed as having no relevance to the Company’s go-forward strategy.
So in the middle of this takeover offer, all the work the company already had slated for 2026 at IBW, the legal outcome of the Aznalcóllar Project tender, this process on these old lithium claims inconveniently surfaces, and there has now been a whole changeup at the management and board level. What a zoo…
Several members stepped down to take the focus away from the old lithium claims and put the focus back on Spain, IBW, San Antonio, and Nueveo Tintillo, but it still has very bad optics and so then the knives come out from pudits, punters, and chatroom keyboard warriors proclaim: “See, they’re shady!”
Emerita Announces Board and Management Transitions
– April 20, 2026
Emerita Resources Corp. announces that David Gower, CEO, Director and co-founder of Emerita, and Larry Guy, Chairman of the Company have resigned from their roles, effective immediately. Mr. Gower will be replaced by Joaquin Merino as Interim Chief Executive Officer while the Company conducts a search for a replacement Chief Executive Officer. David Patterson will replace Mr. Guy as Chairman.
Messrs, Gower, and Guy have voluntarily resigned given their presence as directors and officers has created unnecessary distractions for the Company in light of the recently announced untested allegations by the Ontario Securities Commission.
Each of Messrs, Gower, and Guy strongly dispute the allegations and intend to contest the proceeding. They will continue to provide technical and administrative support to the Company in a consulting capacity during this period of transition in order to avoid any disruption to the ongoing advancement of the Company’s key activities in Spain, in particular as it relates to upcoming development, technical and regulatory milestones for the Iberian Belt West Project (“IBW”).
Anecdotally, I’ve talked with David Gower about a dozen times over the last few years and we’ve done about 10 interviews together over a the KE Report. My experience with him was always professional and he was quite candid about both the progress and challenges that the company was facing. I tried to get an update about a month ago and again several weeks ago, but they were legally blacked out from commenting publicly and that was before those officers, including David, stepped down.
There is a growing chorus of poorly-informed investors claiming this was all “shady.”
I personally find it both curious and disappointing that these people have never even talked to management and they really have no solid context of any of these different projects. Now, maybe it was all shady, and we’ll know in the fullness of time, but to come out and attack the credibility of the company officers without any evidence is quite near-sighted. Let’s see the legal process unfold and reserve judgement until all the facts are on the table.
If commentators bothered to do any serious homework into the value proposition or ongoing work programs at IBW, how the actual legal process works for the administrative decision at Aznalcóllar, or the work to consolidate the land and targeting work for the upside exploration potential at Neuvo Tintillo or San Antonio then they’d see that the management team and board have done a lot of solid work over the last few years.
It would quickly become more clear that the spinout of Brazilian lithium claims (Plaza Norte and Falcon) from a polymetallic precious metals and base metals company totally focused in Spain, were because those assets were non-core. Then they’d not get stuck on outlier details to shape their whole opinion of the company.
Again, I’m reserving judgement on whether or not management or the board did not value those lithium assets correctly when spinning them out, because I have no idea what their process was. I am fine saying “who knows?” rather than automatically assuming the worst, or speculating on what they did or did not do in their due diligence publicly… like some have done.
Many pundits (even ones that should know better) were quick to pass a judgement before even fully understanding all the facts on the situation, simply because a claim was filed. They presented a very skewed take on the company as a result of this one news item, and then essentially labeled the company as a fraud, which is misguided and quite unfair to all the good work they’ve been doing in Spain for years as the primary focus of the company.
I get it, because the story has gotten much more messy and investors and analysts have actually lost the plot with the projects that matter - IBW, San Antonio, and Neuvo Tintillo.
They are hung up with the 2 legal situations for the potential awarding of Aznalcóllar or the sour grapes over Plaza Norte and Falcon, and none of those projects even factor into my personal investing thesis.
It’s really a shame to see a company’s solid exploration and derisking work on several projects, most importantly on their flagship IBW project, all minimized as “shady” through the lens of sensational media coverage geared around kicking the company while they are down.
Regardless… for the purpose of this article on M&A, Emerita has formed a committee to evaluate the offer from Denarius Metals. We’ll see how it goes…
Emerita Forms Special Committee, Engages Canaccord Genuity and Confirms Receipt of a Second Unsolicited Offer Letter From Denarius Metals - April 24, 2026
At this point it has become such a cluster mess, that maybe it would be better for all the projects in Spain to be combined under one roof from a logistics point of view and rebranding; and again for potential development synergies.
However, if Emerita is taken over for such a low market cap before the updated resource estimate incorporating El Cura is released, or the PFS factoring in all 3 deposits comes out, and before knowing the outcome on the administrative court’s decision on the Aznalcóllar tender, then it will have been picked off before a few key potential rerating events have had time to get traction.
That sure would be a shame, but the timing of this OSC investigation into the old Brazilian lithium assets and the board and management team stepping down to remove that distraction from all the good work the company is engaged in has really turned the narrative upside down and created a lot of market F.U.D.
None of the pundits talking down the value proposition of Emerita are even mentioning all the value drivers at IBW, at San Antonio, or Nuevo Tintillo.
They are taking swipes at the management team and board, that is the same group of people that successfully executed on all that growth and good work. It’s just an unfortunate sequence of events.
The concern is that if a deal is not reached here on the merger of Emerita with Denarius, that the synergies between the Aguablanca Mill and IBW may be lost. At face value, those projects could make an interesting combination, but it would be more immediately accretive for Denarius shareholders than Emerita shareholders (even if they don’t recognize that at present).
Over the fullness of time, if the companies do get combined, then there would be plenty of rerating higher in the new proforma Denarius Metals, so I’d hold onto those shares for the journey upwards should the deal get consummated.
I’ve met a number of times with the management team and some board members of Denarius Metals, and used to briefly be a shareholder about a year ago, and have confidence that they could get IBW into development and production. If they do acquire Emerita then I’ll be happy to be a Denarius shareholder again, but do feel at this point it would rob Emerita of the rerating that they may get post resource estimate update and PFS.
As a bonus for investors that click on this article after it has been officially published via email, here is a compelling discussion from the end of this week with Dave Erfle (The Junior Miner Junky).
The hyperlink takes listeners to a part of the discussion on recent M&A in the resource sector that may be of interest and fits the theme here.
Thanks for reading and may you have prosperity in your trading and in life!
Shad
In full disclosure: As previously mentioned, 4 of these companies reviewed are positions held in my personal portfolio and I’ve been following and actively trading them for many years. In addition, some of them are sponsors over at the KE Report.
{So yes, I’m biased in that sense with regards to the companies covered. However, none of the companies I discuss in this channel have ever commissioned me to write about them here on Substack, or even asked me to do so. These articles are me discussing what I’m doing with my own money in my own portfolio… Yes — “I’m talking my book.”}
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