Estrella Resources (ASX:ESR) has started legal proceedings in the Supreme Court of Western Australia against WIN Metals (ASX: WIN), Auric Mining (ASX: AWJ) and unit Widgie Gold, and Neometals (ASX: NMT) over a dispute concerning lithium royalties, according to a Friday 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.
In March 2018, the company sold its unit, Mt Edwards Critical Metals, to Neometals for up to AU$2.7 million.
Under the deal, Neometals had agreed to pay Estrealla a royalty in the amount of AU$0.50 per tonne of 75% of the amount of lithium-bearing ore processed from the tenements.
However, in September 2024, the company said, Mt Edwards Critical Metals completed a transaction with WIN and Auric, selling part of its lithium interest in Mining Lease M15/87 to Auric and its unit, Widgie Gold.
Estrella claimed this sale breached the royalty deed and alleged that by proceeding with the sale, MEL and WIN may have materially violated the deed.
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