Strateco: $87 Million Impairment Charge from the MDDEFP Minister's Decision Not to Issue a Certificate of Authorization for the Matoush Project
BOUCHERVILLE, QUEBEC -- (Marketwired) -- 05/15/13 -- Strateco Resources Inc. ("Strateco") (TSX: RSC)(FRANKFURT: RF9) announces that it has had to recognize the impairment charge of $87,241,070 as at March 31, 2013, following the decision by Quebec's Minister of Sustainable Development, Environment, Wildlife and Parks, Yves-Francois Blanchet, not to issue the certificate of authorization for the Matoush uranium project until the Bureau d'audiences publiques sur l'environnement (the "BAPE") has submitted its report on Quebec's uranium industry.
Strateco was obliged to impair the uranium properties, deferred exploration and evaluation expenditures and fixed assets associated with the Matoush project by over $87 million 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 impairments have generated a reversal of deferred income tax liabilities for the three-month period ending March 31, 2013, and a total deferred income tax recovery of $11,038,464 for the same period.
The net loss for the three-month period ended March 31, 2013, was $77,225,437 or $0.46 per share, compared to a net loss of $1,098,907 or $0.01 for the three-month period ended March 31, 2012.
Meanwhile, the measures Strateco took on April 22, 2013, to assert its rights and protect the rights of its shareholders are moving ahead. It should be recalled that Strateco is asking the MDDEFP Minister for damages in an initial amount of $16,000,000.
Strateco intends to exercise its rights to any future claims in the event that the undue delays to which it is subject continue and lead to irreparable losses for the Matoush project, in which case an additional amount would be added to the claim to compensate for the loss of value of the project, in which Strateco had invested more than $123,000,000 as at December 31, 2012.
On April 22, 2013, Strateco also asked the Quebec Superior Court (the "Court") to issue a safeguard order ordering the government to pay a sum ranging from $420,000 to nearly $800,000 on the last day of each month, commencing on May 31, 2013, until at least September 30. The safeguard order proceeding is expected to be heard in mid-June 2013.
Finally, the motion for mandamus, as amended by Strateco on April 22, 2013, now asks the Court to order that a certificate of authorization be issued for the Matoush project underground exploration program.
This news release contains "forward-looking statements" subject to certain risks and uncertainties. There can be no assurance that these statements will prove to be correct. Actual results and future events could differ significantly from those implied by such statements. These risks and uncertainties are discussed in the annual report filed with the securities commissions of British Colombia, Alberta, Ontario and Quebec.
Contacts:
STRATECO RESOURCES INC.
Guy Hebert, President & Chief Executive Officer
450.641.0775
1.866.774.7722
450.641.1601 (FAX)
ghebert@strateco.ca
Jean-Pierre Lachance, Executive & Exploration Vice President
450.641.0775
1.866.774.7722
450.641.1601 (FAX)
jplachance@strateco.ca
www.strateco.ca
