STRATECO RESOURCES INC company history: the story so far

History

Strateco shed its gold assets in 2006 to focus on Québec uranium, then funded Matoush exploration through flow-through raisings and a Sentient Group convertible deal.

2006-2008: Narrowing to uranium

In June 2006 Strateco agreed to sell its gold-related Discovery and Montbray properties to its wholly owned subsidiary, Cadiscor Resources, so it could concentrate on properties with uranium discovery potential. Shareholders unanimously approved the sale on June 20, 2006. Cadiscor raised $6,599,000 in a public offering and listed on the TSX Venture Exchange on August 21, 2006. The sale closed in August, and Strateco received 20,000,000 Cadiscor shares, valued at $3,200,172. It handed these to its own shareholders at about 0.212 of a Cadiscor share per Strateco share, and Cadiscor stopped being a subsidiary.

The record then goes quiet until October 2008. Strateco raised CA$8,000,001.75 by issuing 4,102,565 flow-through shares at $1.95 to two investors. Flow-through shares pass the tax benefit of exploration spending to the buyer. The money was tied to exploration on the Matoush and Apple projects in Québec.

2010-2011: Sentient and fresh funding

The record is quiet again until February 2010, when Strateco closed a CA$15,000,000 private placement with the Sentient Group. It combined 100,000 units at $0.95 with 14,905 interest-free convertible notes of $1,000 each, with warrants attached. The notes mature on February 27, 2015 and convert at $0.95 into 15,689,474 shares, so existing shareholders could be diluted. Sentient gained a right to keep a 5% holding in future financings and a board nomination. The proceeds were meant for work on the Matoush uranium project.

On December 23, 2010, Strateco closed a bought-deal placement led by Dundee Securities. It sold 9,639,100 units at $0.83 and 5,263,200 flow-through shares at $0.95, for gross proceeds of $13,000,493 and underwriter fees of $650,025. Sentient bought another 1,800,000 units at $0.83 under its right to keep its stake. Its fully converted and exercised holding came to 25,768,422 shares (15.12%), down from 16.48%. The flow-through money was for exploration at Matoush and the Mistassini property.

On March 15, 2011, Strateco filed Form 15F to end its US SEC reporting. About 2.85% of its trading volume was in the US, and 96% was on the TSX. Its TSX listing continued, and the Sentient notes and warrants were unchanged.

Written from the 6 story beats below (2006 to 15 Mar 2011), which come from the company's own announcements and filings.

Beat by beat

The events that changed the company's story, in plain English, each written against everything known about the company at the time. The dot shows whether it was good, bad or neutral for shareholders.

2011

15 Mar
Strateco filed Form 15F on March 15, 2011 to end its duty to file reports with the US SEC, saying it qualifies as a foreign private issuer, with about 2.85% of its trading volume in the US and the TSX as its main market (96% of volume). Its shares stay listed on the TSX and it says it will keep publishing information in English on its website and SEDAR. The filing does not cancel or change shareholders' shares; it only ends US reporting, so the Sentient convertible notes and warrants described earlier are unchanged.
listing compliance notice

2010

28 Dec
Strateco closed a bought-deal private placement on December 23, 2010 with a syndicate led by Dundee Securities: 9,639,100 units at $0.83 (about $8.0M, including the 3,615,000-unit over-allotment) plus 5,263,200 flow-through shares at $0.95 ($5,000,040), for gross proceeds of $13,000,493 and underwriter fees of $650,025. Sentient Group also bought 1,800,000 units at $0.83 ($1,494,000) under its right to keep its stake in new financings, taking its fully converted and exercised holding to 25,768,422 shares (15.12%), down from the 16.48% shown earlier. The flow-through money goes to exploration on the Matoush project properties and the Mistassini property in Québec.
capital raising announcement
2 Feb
Strateco closed a CA$15,000,000 private placement with the Sentient Group, made up of 100,000 units at $0.95 and 14,905 interest-free convertible notes of $1,000 each, with warrants attached. The notes mature February 27, 2015 and can be converted at $0.95 per share (15,689,474 shares in total), so existing shareholders could be diluted. Sentient gets a right to keep a 5% holding in future financings and a board nomination, and could hold 16.48% of the shares if it converted and exercised everything. Proceeds are meant for Matoush uranium project work, and $750,000 in fees is paid in units.
capital raising announcement

2008

8 Oct
Strateco raised CA$8,000,001.75 by issuing 4,102,565 flow-through common shares at $1.95 each to two accredited investors in Ontario. The money must go to exploration spending on the Matoush and Apple projects in Québec, and a 4% finder's fee is payable to a third party.
capital raising announcement

2006

24 Aug
The Cadiscor sale closed: Cadiscor raised $6,599,000 in its public offering on August 17, 2006 and listed on the TSX Venture Exchange on August 21, 2006, and Strateco transferred the Discovery and Montbray properties and received 20,000,000 Cadiscor shares. Those shares are being distributed to Strateco shareholders of record on August 23, 2006, at about 0.212 of a Cadiscor share per Strateco share, and Cadiscor is no longer a wholly owned subsidiary. This completes the sale and distribution announced in June 2006.
material agreement
27 June
Strateco agreed to sell its gold-related Discovery and Montbray properties to its wholly owned subsidiary Cadiscor Resources, so that Strateco can focus on properties with uranium discovery potential. In return Strateco gets 20,000,000 Cadiscor shares valued at $3,200,172 plus reimbursement of instalments it paid to GéoNova, while Cadiscor takes on the remaining GéoNova payments ($275,000 and $1,000,000 by August 30, 2006) and the royalties. Shareholders unanimously approved the sale on June 20, 2006, and also a $3,200,172 reduction of capital to be paid by handing the Cadiscor shares out to Strateco shareholders. Closing still depends on a Cadiscor public offering and TSX Venture listing by August 30, 2006.
material agreement