The court had granted a stay of proceedings under the Companies’ Creditors Arrangement Act (CCAA) until 9 July 2015, which could be renewed thereafter.
The company said the Quebec government’s refusal to grant the certificate of authorization required to go ahead with the Matoush project made it impossible to interest investors in the development.
Strateco is currently unable to meet its financial commitments even though it undertook cost reduction measures.
The company’s main asset now remained its litigious claim against the government, in which it is seeking up to $190m in damages from Canadian government to offset the loss of its investment in the Matoush project.
Strateco plan to seek approval for an interim financing that would enable it to continue to prosecute its proceedings for the benefit of all stakeholders, including its creditors and shareholders, within the framework of the CCAA.
The Matoush project is situated in the Otish Mountains of northern Québec, about 275km north of Chibougamau and 210km northeast of Mistissini.
