VANCOUVER (miningweekly.com) – Canadian uranium project developer Strateco Resources has suffered defeat in its litigation against the government of Quebec, saying it is reviewing the 115-page judgment and assessing the possibility of appealing the decision.
Judge Denis Jacques rendered his decision on Wednesday regarding the company’s lawsuit against the attorney general of Quebec, on behalf of the Quebec provincial government, and the Minister of the Environment.
He rejected Strateco's claim of C$182.68-million for the loss of its investment in the Matoush uranium project, in the Otish mountains about 275 km north of Chibougamau, as well as denying a further C$10-million in punitive damages.
Strateco was forced to halt the development of the Matoush project following the Quebec government's refusal to issue a certificate of authorisation for the advanced exploration phase required to advance the project.
Strateco had spent about C$120-million on exploring the Matoush project, but was forced to file for bankruptcy protection in 2015 after First Nation opposition to the project, which is located on reserve lands, had halted the company’s flagship project dead in its tracks.
The firm was embroiled in a bitter dispute with the Quebec government over its refusal to grant the certificate of authorisation. 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 shuttered for years, since a moratorium and commission of inquiry into Quebec's uranium industry was announced in March 2013.