Update From Strateco: CCAA Court Protection and Financing for the $190 Million Litigation Against the Quebec Government
BOUCHERVILLE, QUEBEC--(Marketwired - Oct. 8, 2015) - The Superior Court of Quebec, Commercial Division, has renewed the initial order issued for Strateco Resources Inc. ("Strateco") under the Companies' Creditors Arrangement Act ("CCAA") until October 21, 2015, to enable Strateco to close on interim financing of $4,000,000 to cover, among other things, the costs associated with its $190 million litigation against the Quebec government (the "Litigation"). In connection with the Litigation, Strateco interrogated government representatives during the month of September, as well as signing an agreement with the Crees and the Attorney General of Quebec setting out the terms governing the extent of Cree participation in the legal proceedings.
Court Protection under the CCAA
On September 29, 2015, the Honourable Justice Danielle Turcotte, who is responsible for the proceedings instituted by Strateco under the CCAA, authorized an extension of the protection granted by the initial order until October 21, 2015, to enable Strateco to finalize its efforts to financing the $190 million Litigation against the Quebec government.
On September 24, 2015, Strateco received a binding offer for $4 million in interim (debtor-in-possession) financing, subject to certain conditions, to finance legal fees and expenses associated with the Litigation and Strateco's short-term cash requirements in connection with the proceedings.
Motion to Institute Proceedings (the Litigation)
In relation to the motion to institute proceedings and as provided for in the schedule agreed to by Strateco and the Attorney General of Quebec, Strateco examined representatives of the Quebec government in September 2015.
In addition, Strateco signed an agreement with the Crees and the Attorney General of Quebec setting out the terms governing for Cree participation in the Litigation proceedings, to the satisfaction of all parties. Pursuant to the agreement, Strateco and the Attorney General of Quebec will interrogate a Cree representative in November 2015.
As a next step, Guy Hebert, the President and CEO of Strateco, will be interrogated by Cree prosecutors at the end of October 2015. The timing of the proceedings is in line with the established timetable.
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 Strateco's annual information form filed with the securities commissions of British Colombia, Alberta, Ontario and Quebec.
FOR FURTHER INFORMATION PLEASE CONTACT:
Strateco Resources Inc.
President and Chief Executive Officer
Executive Vice President
450.641.0775 or 1.866.774.7722