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Phoenix Gems Provides Court Judgment Update

In a significant development, Phoenix Gems has issued a public update concerning the civil action identified as No. 0034186-18, which unfolded in Brazil. Following a recent statement by Helius Minerals Limited, the company provided details regarding the public Judgment from the Tribunal de Justiça de Pernambuco that has drawn considerable interest from investors and stakeholders alike.

On July 7, 2026, Helius Minerals Limited highlighted aspects of Civil Action No. 0034186-18. The ensuing response from Phoenix Gems sheds light on the core details and outcomes associated with this legal entanglement, providing a clearer picture of the current status of judicial proceedings.

Background of the Litigation

This litigation traces its origins back to June 2007 when Brent Evan Smith was excluded from Phoenix Gems do Brasil Ltda. This exclusion took place approximately three years after the execution of the contractual agreements dated June 5, 2004, related to the Serra Pelada project. The source of contention involves Smith's claim against the company and other associated parties, including Artaxerxes Campos Carvalho Lima, Verônica Campos Lima, Colossus Mineração Ltda., and COOMIGASP – Cooperativa de Mineração dos Garimpeiros de Serra Pelada.

According to the public Judgment, Smith sought various forms of relief, including the annulment of all legal actions and transactions made post his exclusion, particularly those involving Colossus Mineração Ltda. This placed considerable implications on contracts and relationships forged during this contentious period.

Court Findings

After careful consideration of submitted evidence and the applicability of Brazilian law, the Court determined that the contractual amendment made in June 2007, which resulted in Smith’s exclusion from the company, was null and void. In its ruling, the court emphasized the necessity of restoring Smith’s status as a shareholder, thus reinstating his rights and obligations within the company. This decision aims to revert the legal state to what it was prior to his exclusion.

Moreover, the ruling nullified subsequent legal transactions that were deemed contingent upon the validity of Smith's exclusion while ensuring that the rights of good-faith parties are protected. The court also found merit in Smith’s claims for damages due to moral harm and rejected counterclaims presented by others involved in the case.

Current Status and Next Steps

The Judgment reached its finality on June 4, 2026, as documented in the court's records. Subsequently, on July 6, 2026, the court issued an official certificate and referred the entire case file for further proceedings in the enforcement stage, in accordance with Brazil's judicial protocol.

Stakeholders interested in the details of the Judgment and its implications have access to the complete judicial record via the Tribunal de Justiça de Pernambuco's Public Consultation Portal. This transparency ensures that all stakeholders, including investors and regulatory bodies, are equipped with the necessary information to navigate the evolving legal landscape.

About Phoenix Gems

Phoenix Gems operates as a privately held U.S. corporation, specializing in international mineral exploration and strategic acquisitions. With a firm commitment to transparency and corporate governance, Phoenix Gems is dedicated to ensuring that its stakeholders are informed and engaged during significant legal proceedings.

For additional inquiries, media representatives can contact Brent E. Smith, the founder and president of Phoenix Gems, at +1 (248) 429-7273 or via email at [email protected].