Strateco Receives Creditors Protection After Quebec Government Refuses to Permit Matoush Project

Strateco Resources Inc. (TSX:RSC,OTCMKTS:SRSIF) announced its has received creditors protection from the the Superior Court of Quebec under the Companies’ Creditors Arrangement Act after the Quebec government refused to grant the company the certificate of authorization needed to continue with the operation.

As quoted in the press release:

The Quebec government’s refusal to grant the certificate of authorization needed to proceed with the Matoush project has placed Strateco in a situation where it has become impossible to interest investors in the Matoush project. Strateco is currently unable to meet its financial commitments in spite of the fact that it has implemented measures aimed at reducing costs.

Strateco’s principal asset is its litigious claim against the Government of Quebec, in which Strateco seeks up to $190 million in damages to offset the loss of its investment in the Matoush project. Strateco intends to seek, within the framework of the CCAA, the approval of an interim financing which would allow it to continue the prosecution of these proceedings for the benefit of all stakeholders, including its creditors and shareholders.

In the initial order issued under the CCAA, the Court has authorized the postponement of Strateco’s annual meeting. In lieu of its next annual meeting, scheduled for June 17 at 10:30 am, at the Hilton Garden Inn in Montreal, Strateco will hold a public information meeting at the same place, date and time.

Click here to read the full Strateco Resources Inc. (TSX:RSC,OTCMKTS:SRSIF) press release.