Uranium junior Strateco Resources (TSE:RSC) is seeking damages and interest of $16 million from the Quebec government over its decision in April to institute a moratorium on the issuance of permits for uranium projects.
Strateco Resources, which is exploring and developing its Matoush uranium project, has dropped 60% in the last month and is currently trading at 6.5 cents a share.
The company said in a statement that the damages represent the loss in the company’s market capitalization since the moratorium was handed down by Yves-Francois Blanchet, the Minister of Sustainable Development, Environment, Wildlife and Parks. Damages sought could run as high as $120 million if the “. . . undue delays which are currently subject to continue and lead to irreparable losses for the Matoush project.”
The company will also ask the Quebec Superior Court to order the minister to issue permits.
Strateco’s Mantoush uranium project is an advanced exploration project, located in the Otish Mountains, about 275 km north of Chibougamau and 210 km northeast of Mistissini (Quebec, Canada). It’s most recent drill results in December showed an indicated resource estimated at 586,000 tonnes with an average grade of 0.95 % U3O8 containing 12.33 million pounds of U3O8. The inferred mineral resource now stands at 1.69 million tonnes at an average grade of 0.44% U3O8 containing 16.44 million pounds of U3O8.
Image by Joe Shlabotnik
