Strateco Resources Inc.

Strateco Resources Inc.

April 22, 2013 12:34 ET

Strateco Serves Government With Formal Notice

Other legal proceedings also undertaken

BOUCHERVILLE, QUÉBEC--(Marketwired - April 22, 2013) - Strateco Resources Inc. ("Strateco") (TSX:RSC)(FRANKFURT:RF9) announced today that following the moratorium on the issuance of permits for uranium projects announced by the Minister of Sustainable Development, Environment, Wildlife and Parks, ("MDDEFP"), it is instigating a series of legal actions to assert its rights and protect those of its shareholders.

As a first step, Strateco has served the MDDEFP with a notice for damages and interest set at an initial amount of $16 million. This sum represents the loss in the company's market capitalization since the Minister of MDDEFP's announcement.

Strateco, through its legal counsel, informed the Minister of the MDDEFP, Yves François Blanchet, that it held him liable for damages caused by his misconduct up until this time, and that it has given instructions for legal proceedings to be instituted to obtain compensatory and punitive damages.

Strateco reserves all rights to any future claims in the event that the undue delays which are currently subject to continue and lead to irreparable losses for the Matoush project. In these circumstances, an additional amount will be added to the claim. It would represent compensation for the loss of value of the project, the amount of which has yet to be determined, as well as the loss of $120 million invested so far.

In addition, Strateco asks that the Quebec Superior Court issues a safeguard order. Strateco believes, as stated in its press release dated March 28, 2013 and its subsequent public statements, that the government has upset the balance between the parties. The impact is such that, without a rapid safeguard and recovery order, Strateco is unlikely to be able to maintain its Matoush facilities or cover the costs essential to the viability of this project until the Court rule.

Considering the urgency of the situation, the balance of convenience, the fact that Strateco will experience serious and irreparable damages and the appearance of illegality of the government's position, Strateco requests that the Court orders the government to pay a sum ranging from $420,000 up to $800,000 on the last day of each month beginning on May 31, 2013 and until September 30 at minimum. These amounts represent the shortfall between Strateco's available cash and sums required to cover basic costs to sustain the Matoush project.

Furthermore, Strateco amended its petition for mandamus which, originally, asked the Quebec Superior Court to order the Minister to make a decision on the issuance of permits.

Strateco now asks that the Court order the issuance of permits.

"We are of the opinion that the government's position is contrary to the provisions of the Environment Quality Act(1) and that it is irreconcilable with the principles of good faith that must guide it. The government is taking part in an illegal decision," stated Guy Hébert, President and CEO of Strateco.

Strateco therefore asks the Court to exercise their discretionary powers and order the government to authorize the project.

This news release contains "forward-looking statements" subject to certain risks and uncertainties. There can be no assurance that these statements will prove to be correct. Actual results and future events could differ significantly from those implied by such statements. These risks and uncertainties are discussed in the annual report filed with the securities commissions of British Colombia, Alberta, Ontario and Quebec.

(1) L.R.Q., c Q-2

Contact Information

  • For media:
    Denis Boucher

    For investors and analysts:
    Guy Hebert