Auric’s statement practically hands ESR the legal ammunition on a silver platter.
1. “No impact on operations” — That’s not up to Auric to decide. If a court rules that lithium disturbed during gold mining triggers a royalty, then operations will absolutely be impacted — legally, financially, and operationally.
2. “Only one of twenty tenements” — That’s irrelevant. ESR only needs one breach to assert its legal rights. If the Munda tenement is included under the royalty, then it’s entirely valid for action.
3. “Auric has no interest in exploiting lithium” — Again, irrelevant. The royalty clause doesn’t require intent. If lithium is *disturbed*, *extracted*, or *stockpiled* as part of the gold operation, they’re on the hook — full stop.
4. “There must be economic grade lithium” — Correct — but that’s exactly what a court process is designed to test. Estrella isn’t just throwing darts — they clearly believe there’s enough cause to litigate. If there’s *any* lithium of value in the ore body, Auric may be liable.
5. “We haven’t identified economic quantities” — Fantastic. Then go ahead, show the sampling data under cross-examination. If Estrella presents contradictory evidence or even raises doubt, the court could easily err on the side of protecting the royalty holder’s interest.
Bottom line: This isn't a PR release — it's an attempt to shape narrative ahead of legal exposure. And it reads like a pre-emptive defense, not a position of strength. This could hang over Auric’s head for years — unless they settle.
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