Strateco Slumps 60% To New Yr Lows As Resumes Trade After Denouncing the Government of Quebec's Decision
Strateco Resources Inc. (RSC.TO) has resumed trading and promptly slumped nearly 60% to a year low 4 cents after Thursday denouncing the announcement today by the Minister of Environment regarding uranium exploration and mining.
"In addition to overlooking the recommendations of his own review committee, the Minister has also completely ignored the Canadian Nuclear Safety Commission's expert opinion. These internationally recognized experts have all concluded, without exception, that our project is safe," said Guy Hebert, President and CEO, Strateco Resources Inc.
It said the Minister's announcement follows ongoing legal proceedings aimed at forcing the government to make a decision which it has refused or neglected to make for nearly two years. "Strateco intends to look into the legality of such an announcement given that the Superior Court has not yet had the opportunity to rule on the matters brought to its attention."
In such a context, today's announcement is intended to unduly delay any certificate of approval for the Strateco's Matoush project, it added
"Without prior notice and for no good reason, neither rational nor scientific, the government has changed the rules. The Minister's attitude is both irresponsible and unprecedented," said Hebert.
"The government will undertake studies ahead of any mandate to be eventually given to the Bureau d'audiences publiques sur l'environnement (BAPE), the parameters of which are not yet known and cannot be predicted.
"Strateco intends to analyze the impact of this decision on the approval process which has been ongoing for four years. It will also analyze the responsibility of the government and other stakeholders in this matter and will vigorously defend its rights given the serious implications the government's decision will have on Strateco.
"We will use every means available to protect our company and our shareholders. We will not standby in the face of such an arbitrary and unjust decision," added Hebert.
"To date, Strateco has invested over $120 million in its Matoush project. All required approvals, including from the provincial review committee, the federal review committee, the federal Minister of the Environment and the Canadian Nuclear Safety Commission have been obtained after a rigorous review process and a series of public hearings."
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