MONTREAL, Dec. 23, 2019 (GLOBE NEWSWIRE) — HPQ Silicon Resources Inc. (“HPQ” – “The Company”) TSX-V: HPQ; FWB: UGE; Other OTC: URAGF; announces that it closed a non-brokered private placement of 3,000,000 units (“Unit”) at $0.07 per Unit for gross proceeds of $210,000.“Manufacturing Silicon (Si) samples for emerging Li-ion batteries opportunities identified during the latter part of 2019 required additional investments. This financing gives us the flexibility needed to accelerate our battery related R&D efforts in early 2020,” said Bernard Tourillon, President & CEO of HPQ Silicon. “Being able to attract this level of unsolicited investor interest, during the worst period of the year to raise hard cash funding, gives us great confidence about 2020 as we strive to deliver the critical Silicon material required by the surging Li-ion battery market in 2020 and beyond.”Placement Terms: Each Unit is comprised of one (1) common share and one (1) common share purchase warrant (“Warrant”) of the Company. Each Warrant will entitle the Subscribers to purchase one common share of the capital stock of the Company at an exercise price of $ 0.10 for a period of 36 months from the date of closing of the placement. Each share issued pursuant to the placement will have a mandatory four (4) month and one (1) day holding period from the date of closing of the placement. The Placement is subject to standard regulatory approvals.In connection with the placement the Company will pay cash finder’s fee of $15,358 to StephenAvenue Securities Inc. (“StephenAvenue”) of Toronto, Ontario. The Company will also issue 219,400 warrants to StephenAvenue. Any share purchased through the exercise of the warrants has the mandatory four (4) month and one (1) day holding period from the date of closing of the placement and each warrant gives StephenAvenue the right to purchase one (1) common share at $0.10 for 36 months following the closing of the Placement. Mrs. Noëlle Drapeau, HPQ Corporate Secretary and a Director has subscribed for 100,000 Units. Following the completion of the Private Placement, Mrs. Drapeau will beneficially own or exercise control or direction over, directly or indirectly, 1,778,416 Common Shares, representing approximately 0.77% of the issued and outstanding Common Shares of the Company.The participation of Mrs. Drapeau in the Private Placement constitutes a “related party transaction” within the meaning of Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions (“MI 61-101”) and Policy 5.9 – Protection of Minority Security Holders in Special Transactions of the Exchange. In connection with this related party transaction, the Company is relying on the formal valuation and minority approval exemptions of respectively subsection 5.5(a) and 5.7(1)(a) of MI 61-101 as the fair market value of the portion of the Private Placement subscribed by Mrs. Drapeau does not exceed 25% of the Company’s market capitalization. The Board of directors of the Company has approved the Private Placement, including the participation of Mrs. Drapeau therein, with Mrs. Drapeau abstaining with respect to his participation.About SiliconSilicon (Si) is one of today’s strategic materials needed to fulfil the renewable energy revolution presently under way. Silicon does not exist in its pure state; it must be extracted from quartz, one of the most abundant minerals of the earth’s crust and other expensive raw materials in a carbothermic process.About HPQ SiliconHPQ Silicon Resources Inc. (TSX-V: HPQ) is developing, with PyroGenesis Canada Inc. (TSX-V: PYR), a high-tech company that designs, develops, manufactures and commercializes plasma base processes, the innovative PUREVAPTM “Quartz Reduction Reactors” (QRR), a truly 2.0 Carbothermic process (patent pending), which will permit the One Step transformation of Quartz (SiO2) into High Purity Silicon (Si) at prices that will propagate its considerable renewable energy potential. The Gen3 PUREVAPTM QRR pilot plant that will validate the commercial potential of the process is scheduled to start during Q1 2020.HPQ, working with PyroGenesis, is also developing a process that can take the High Purity Silicon (Si) made by the PUREVAPTM and manufacture Nano-Structure Silicon powders for Next Gen Li-ion batteries. Starting in Q1 2020, the plan is to validate our game changing manufacturing approach using a modified Gen2 PUREVAPTM reactor to produce Nanoscale Structure Silicon (Si) powders samples for industry participants and research institutions’.Concurrently, HPQ is also working with industry leader Apollon Solar to develop a manufacturing capability that uses the High Purity Silicon (Si) made with the PUREVAP™ to make Porous silicon wafers needed for solid-state Li-ion batteries. The first Silicon wafer should be ready to be ship for testing to a battery manufacture (under NDA) during Q1 2020.Finally, with Apollon Solar, we are also looking into developing a metallurgical pathway of producing Solar Grade Silicon Metal (SoG Si) that will take full advantage of the PUREVAPTM QRR one-step production of Silicon (Si) material of 4N+ purity with low boron count (< 1 ppm).All in all, HPQ focus is becoming the lowest cost producer of Silicon (Si), High Purity Silicon (Si), Nano-Structure Silicon powders for Next Gen Li-ion batteries, Porous Silicon Wafers for Solid states Li-ion batteries, Porous Silicon Powders for Li-ion batteries and Solar Grade Silicon Metal (SoG-Si).This News Release is available on the company’s CEO Verified Discussion Forum, a moderated social media platform that enables civilized discussion and Q&A between Management and Shareholders. Disclaimers: The Corporation’s interest in developing the PUREVAP™ QRR and any projected capital or operating cost savings associated with its development should not be construed as being related to the establishing the economic viability or technical feasibility of the Company’s Roncevaux Quartz Project, Matapedia Area, in the Gaspe Region, Province of Quebec.This press release contains certain forward-looking statements, including, without limitation, statements containing the words “may”, “plan”, “will”, “estimate”, “continue”, “anticipate”, “intend”, “expect”, “in the process” and other similar expressions which constitute “forward-looking information” within the meaning of applicable securities laws. Forward-looking statements reflect the Company’s current expectation and assumptions and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated. These forward-looking statements involve risks and uncertainties including, but not limited to, our expectations regarding the acceptance of our products by the market, our strategy to develop new products and enhance the capabilities of existing products, our strategy with respect to research and development, the impact of competitive products and pricing, new product development, and uncertainties related to the regulatory approval process. Such statements reflect the current views of the Company with respect to future events and are subject to certain risks and uncertainties and other risks detailed from time-to-time in the Company’s on-going filings with the security’s regulatory authorities, which filings can be found at www.sedar.com. Actual results, events, and performance may differ materially. Readers are cautioned not to place undue reliance on these forward-looking statements. The Company undertakes no obligation to publicly update or revise any forward-looking statements either as a result of new information, future events or otherwise, except as required by applicable securities laws.Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.For further information contact
Bernard J. Tourillon, Chairman, President and CEO Tel (514) 907-1011
Patrick Levasseur, Vice-President and COO Tel: (514) 262-9239
Email: [email protected]
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