Photo by: Bloomberg
TORONTO (miningweekly.com) – After a year of legal wrangling with the Quebec government and local First Nations, Quebec-based uranium explorer Strateco Resources on Thursday said it was forced to adopt a cost-cutting programme and shutter its flagship Matoush camp in the Otish mountains, in the north of the province.
The Boucherville, Quebec-based firm blamed the Quebec government's refusal to issue the final permit needed to start the advanced exploration phase of the Matoush project for its decision.
Last month, the company sought to remove the chairperson of a commission of inquiry into provincial uranium industry issues, citing bias.
The project has been on standby for over a year, since a moratorium and commission of inquiry into Quebec's uranium industry was announced March 28, 2013.
Strateco said it had already finalised the sale of some of its facilities and equipment at the Matoush camp.
“The damages arising from the liquidation of the Matoush camp and any cost associated with reopening the camp in the future add to the damages incurred by Strateco and its shareholders following the Quebec government's refusal to issue the certificate of authorisation,” the company said.
The explorer said it would now turn its attention to prospecting in Saskatchewan in the coming months, through its subsidiary SeqUr Exploration.
In a separate statement, Strateco said it had secured $1.4-million in a private placement of 28-million common shares at $0.05 apiece with insider Sentient Executive GP IV. The company would use the money to maintain its listing on the TSX.
Further, SeqUr Exploration on Thursday also issued 15-million common shares of Strateco in exchange for Strateco's option on the Jasper Lake uranium project, consisting of four properties in Saskatchewan, from Denison Mines and closed a $100 000 private placement by issuing five-million common shares at $0.02 to Sentient.
The company’s TSX-listed stock on Thursday closed at C$0.05 apiece.