TSX-V-listed Lithium Ionic has announced its directors David Gower, Lawrence Guy and Hélio Diniz have resigned effective immediately.

The company’s corporate secretary Damian Lopez also tendered his resignation.

The individuals concerned decided to step aside in the best interests of the company in response to a proceeding initiated by Ontario Securities Commission (OSC) on April 9.

Lithium Ionic is not a respondent to the OSC proceeding and no orders have been sought against the company.

The OSC announced enforcement proceedings against Emerita Resources, and five of its directors and officers related to alleged misconduct. The OSC alleges that several of Emerita’s directors, including Gower, Guy, Diniz and Lopez participated in actions which ultimately diverted lithium mining claims in Brazil, known as the Falcon project.

The OSC was confident that this conduct defrauded Emerita and its investors. A case management hearing has been set before the Capital Markets Tribunal on May 8.

Gower, Guy, Diniz and Lopez were engaged by Lithium Ionic pursuant to an independent contractor agreement that could be terminated by the company at any time by paying an amount equal to 12 months’ fees.

Diniz will remain in an operational role as MD of the Brazilian operations through an independent contractor services agreement.

Gower, Guy and Lopez have also agreed that they will not dispose of any common shares of Lithium Ionic that they hold, other than subject to agreed customary exceptions, for a period of one year.

The board of directors and special committee members of the company remain committed to good governance and constructive engagement with its shareholders and will provide further updates as appropriate. Lithium Ionic affirms it will engage with Waratah Capital Advisors regarding its request that the board call a special meeting of shareholders.

Lithium Ionic remains focused on advancing the Bandeira project and executing on its strategy to become a lithium producer in Brazil’s Lithium Valley.