TORONTO (miningweekly.com) – During its annual general meeting on Tuesday, shareholders of Quebec-focused uranium-mining hopeful Strateco Resources approved a special resolution allowing the firm’s directors to enter into a private placement of up to $3-million by the end of the year, placing it in a much better position to fend off the ongoing TSX delisting review.

Strateco is embroiled in a legal battle to obtain permission to undertake an underground exploration programme at its flagship Matoush project, located within the Eeyou Istchee First Nation reserve.

The TSX had been reviewing the eligibility of Strateco's common shares for listing under the continued listing requirements since December 17.

Strateco on Wednesday said that the issue price would be equal to, or less than the weighted average share price for the 20 trading days preceding the date of issue.

Strateco insider The Sentient Group would be allowed to subscribe for a maximum of $2.5-million of the placement.

“Now that this special resolution has been adopted, Strateco is confident it will be able to maintain the listing of its common shares on the TSX and may enter into a $1.4-million private placement with Sentient as per a letter of intent dated May 8,” the company said.

Sentient signed a letter of intent at the same time with SeqUr Exploration, a subsidiary of Strateco, for a private placement of $100 000.

At the meeting, 99.37% of Strateco shareholders also voted in favour of another special resolution authorising the directors to choose the appropriate time for and fix the amount of the reduction in stated capital of up to $3-million and, if appropriate, to proceed with a special distribution to Strateco's shareholders as redemption of paid-up capital regarding its common shares, and to distribute 15-million common shares of SeqUr to shareholders in payment for this redemption of share capital.

Further, all of Strateco's directors were re-elected, and professional services firm PwC was appointed as the company's auditor.