QUEBEC – Strateco Resources of Boucherville, QC, has taken an impairment charge of $87.24 million at the end of March 2013, following the decision by Quebec's minister of Sustainable Development, Environment, Wildlife and Parks not to issue the certificate of authorization for the Matoush uranium project 260 km northeast of Chibougamau, in the Otish Mountains. The government is awaiting a report on Quebec's uranium industry following public hearings.
Strateco said it had to take the write down "… due to its inability to proceed with the Matoush project underground exploration program, the absence of significant exploration and evaluation expenditures planned for the coming year and the uncertainty surrounding Quebec's uranium industry."
The company had a net loss for the three-month period ended March 31, 2013, of $77.23 million or $0.46 per share, compared to a net loss of $1.10 or $0.01 per share for the same quarter a year earlier.
Strateco has also started legal proceedings against the Quebec government seeking damages due to its decisions and compensation for the loss of value of the project, which amounted to more than $123 million as of the end of last year.
Details of the Matoush uranium project are posted at StratecoInc.com.