Trident Royalties PLC (AIM:TRR) said an Alberta court has reversed an earlier decision in a case brought by Bacanora Minerals over a royalty on the Sonora lithium project in Mexico.
Time barred in the original ruling, an appeal by Bacanora against that decision has been upheld and the case now goes back to the Court of King's Bench of Alberta to consider the merits of the claim.
Bacanora brought the writ against the estate of Ian Colin Orr-Ewing alleging that its claim on the Sonora royalty arose either by misrepresentation or without consideration.
The estate, which is working with Trident, disputes the allegations and intends to vigorously defend itself in the action, Trident said in a statement.
Through an agreement in January 2022, Trident agreed to provide funding for the acquisition of the 3% gross revenue royalty (1.5% attributable) over Sonora via a 50/50 joint venture, Sonory.
The agreement includes a provision that the litigation by Bacanora is favourably resolved for the estate and that no changes in Mexico's regulatory regime materially affect the Sonora project.
If Trident elects to exit the joint venture, the repayment date of an initial loan made by Trident of US$2.5mln is due six months from notification of termination.