https://www.miningweekly.com

Strateco files for bankruptcy protection on Quebec permit denial

Strateco files for bankruptcy protection on Quebec permit denial

Photo by Bloomberg

10th June 2015

By: Henry Lazenby

Creamer Media Deputy Editor: North America

  

Font size: - +

TORONTO (miningweekly.com) – Junior explorer Strateco Resources has received creditor protection from the Superior Court of Quebec after First Nation opposition to its Matoush uranium project, located on reserve lands in the province’s Otish mountains, had halted the company’s flagship project dead in its tracks.

The court had granted a stay of proceedings under the Companies' Creditors Arrangement Act (CCAA) until July 9, which could be renewed thereafter.

Strateco’s TSX-listed stock was suspended on Tuesday until Friday, when it would be formally delisted from the exchange’s main board.

The Boucherville, Quebec-based firm was embroiled in a bitter dispute with the Quebec government over its refusal to grant the certificate of authorisation needed to proceed with underground exploration at the Matoush project. This had driven away investor interest, rendering the company unable to meet its financial commitments in spite of its cost-reduction measures.

The Matoush project has been on standby for about two years, since a moratorium and commission of inquiry into Quebec's uranium industry was announced on March 28, 2013.

Strateco's main asset now remained its litigious claim against the provincial government, in which Strateco sought up to $190-million in damages to offset the loss of its investment in the Matoush project. Strateco would seek approval for an interim financing that would allow it to continue to prosecute its proceedings for the benefit of all stakeholders, including its creditors and shareholders, within the framework of the CCAA.

The initial court order had postponed the company’s upcoming annual general meeting.

Law firm Stikeman Elliott was representing Strateco at the CCAA proceedings, for which E&Y had been appointed by the court to act as monitor.

Three Strateco directors had also resigned with immediate effect.

Edited by Tracy Hancock
Creamer Media Contributing Editor

Comments

Showroom

Stewarts & Lloyds
Stewarts & Lloyds

Stewarts & Lloyds today supplies steel and tube, pipe and fittings, valves, pumps, irrigation, fencing, profiling and roofing products. The cash...

VISIT SHOWROOM 
Yale Lifting Solutions
Yale Lifting Solutions

Yale Lifting Solutions is a leading supplier of lifting and material handling equipment in Southern Africa. Yale offers a wide range of quality...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Hyphen, Eva mine, ferrochrome price make headlines
Hyphen, Eva mine, ferrochrome price make headlines
27th March 2024
Resources Watch
Resources Watch
27th March 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.112 0.146s - 90pq - 2rq
Subscribe Now