Strateco Takes Legal Action Against Quebec Government; Shares Slump 7%
Strateco Resources Inc. (RSC.TO) is instigating a series of legal actions after Quebec's Minister of Sustainable Development, Environment, Wildlife and Parks announced a moratorium on the issuance of permits for uranium projects.
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 MDDEFP Minister Yves FranÃ§ois Blanchet made the moratorium announcement, the company said in a statement.
Strateco said it holds Blanchet "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 has also asked the Quebec Superior Court to issue a safeguard order, requesting that the government pay a sum ranging from $420,000 to $800,000 on the last day of each month beginning in May and until at least September. "These amounts represent the shortfall between Strateco's available cash and sums required to cover basic costs to sustain the Matoush project," Strateco said.
RSC shares were down half-a-cent at $0.06, close to 52-week lows of $0.04.
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