HPQ Silicon Inc. – an innovative silicon solutions and technology development company – has informed shareholders that, subsequent to the July 15, 2022 press release announcing a successful change of classification from a Tier 2 Mining Issuer to an Industrial, Technology or Life Sciences Tier 1 Issuer on the TSX Venture Exchange (the “Exchange”), it has signed a Property acquisition transaction with Quebec Silica Resources Corporation regarding the sale of HPQ’s last exploration assets, the Roncevaux and Martinville Quartz properties, for a $300,000 consideration.
The Roncevaux property is in the Matapedia region of Gaspé, about 75 km south of Causapscal and is made up of 27 map-designated cells (Claims) covering a total of 1,551 hectares available for exploration. The Martinville Property is in the Eastern Township, 180 km east of Montreal, 30 km south of Sherbrooke and is made up of 36 map-designated cells (Claims) covering a total of 2,179 hectares available for exploration. Both properties were no longer classified as “Exploration Properties” in HPQ financial statements but were referred to as “Exploration and Evaluation Assets held for Sale” as a result of the company’s change in classification.
Under the terms of the “arm’s length transaction,” and subject to both parties obtaining the required regulatory approvals, HPQ agrees to transfer to QTZ 100% interest in both properties, and QTZ agrees to issue to HPQ 3,000,000 Acquisition Units, at a price of $0.10 per Acquisition Unit ($300,000). Each Acquisition Unit is comprised of one (1) Acquisition Share and one-half (½) of an Acquisition Warrant, with each Acquisition Warrant entitling HPQ to subscribe for one (1) Common Share at a price of $0.15 for a period of three (3) years following the Closing Date. The exact closing date of the transaction will be announced once all regulatory approvals have been received for HPQ and QTZ.
HPQ CEO Bernard Tourillon commented: “With HPQ now classified as a Tier 1 level Industrial, Technology or Life Sciences issuer; combined with the PUREVAPTM GEN3 QRR pilot plant about to come online, the time was right for us to move on from all exploration assets. HPQ’s value proposition is derived from harnessing the potential of its silicon materials innovations: the manufacturing and commercializing of silicon and nanosilicon materials needed for ESG-compliant silicon materials. With this transaction, we can focus all of our efforts on our silicon initiatives and let QTZ focus on developing quartz resources.”