WIN Metals (ASX:WIN) said it intends to vigorously defend the previously disclosed legal proceedings initiated by Estrella Resources (ASX:ESR), which alleges breaches of a lithium royalty deed, according to a Monday filing with the Australian bourse.
The proceedings focus on Estrella's entitlement to royalties from lithium-bearing ore extracted from M15/87, a granted mining lease which contains the Munda gold project in Western Australia.
The company said the claims are "frivolous and without merit" and will seek to recover legal costs and pursue potential counterclaims.
Shares of WIN Metals rose almost 5% in recent Monday trade.