TORONTO (miningweekly.com) – Quebec-based uranium project developer Strateco Resources this week said the Quebec Superior Court had rejected its motion for a safeguard measure that would have ordered the government to pay the company between $420 000 and $800 000 on the last day of each month from June 30.

Justice Danielle Blondin on Wednesday said one reason for the ruling was that the court could not, at this stage in the proceedings, assume what the final ruling would be on the company’s main application for mandamus.

Justice Blondin said a quantifiable prejudice could be compensated by damages and did not, in principle, cause the irreparable prejudice required for a safeguard order to be issued.

She added, citing a Supreme Court of Canada ruling, that financial prejudice may be irreparable in nature only in a case where a court ruling has the effect of causing the loss of part of a business or where one party may suffer permanent commercial loss.

Strateco president and CEO Guy Hebert said the company was “clearly disappointed by this ruling".

He pointed out that, following the hearings on the application for a safeguard order, held on June 13 and 14, the Minister of Sustainable Development, the Environment, Wildlife and Parks (MDDEFP) reacted by sending a notice to Strateco on June 21 stating an intention not to issue a certificate of authorisation to the company.

“Since November 2012, the Minister had been aware of the position taken by Deputy Minister Diane Jean against following the provincial review panel recommendation to approve the Matoush project. This notice from the Minister was one of the factors taken into consideration by Justice Blondin,” he said.

Strateco stressed that it would continue the legal proceedings under way and reiterated that it had already served notice to the MDDEFP Minister informing him of its intention to claim damages for the prejudice it had suffered, including a $16-million loss in market capitalisation.

Strateco said it would continue its vigorous defence of the interests of its shareholders, who had already invested more than $120-million in the Matoush uranium project.