HPQ-Silicon arranges Au asset spin-off, raises $555,750
2016-09-07 12:47 ET - News Release
Mr. Patrick Levasseur reports
HPQ PROVIDES UPDATE ON STATUS OF GOLD ASSET SPIN-OFF, ANNOUNCES CLOSING OF NEW PRIVATE PLACEMENT TOTALLING $555,750
HPQ-Silicon Resources Inc. has provided an update regarding the status of its gold asset spin-off, as well as the completion of a new non-brokered private placement.
Spin-off and dividend of gold assets
The spin-off of HPQ-Silicon's gold assets into a fully owned subsidiary is proceeding as follows:
The subsidiary has been incorporated under the name of Beauce Gold Fields Inc./Les Champs d'Or de Beauce Inc.
A number of documents and activities related to the listing application have been completed.
The listing application is nearly complete.
The update of the NI 43-101 report on the Beauce placer project has encountered an administrative delay. The update is required to be filed at the same time as the listing application for review of the file and approval of the listing. To this end, HPQ-Silicon has requested a temporary authorization from the Ordre des Geologues du Quebec for the professional geologist who prepared the original Ni-43-101 report, Vivian Stuart-Williams, to work on the project as he is based out of the Republic of South Africa. Since this process also requires authorization from Office de la langue Francaise, the corporation is looking at retaining another expert to write the NI 43-101 report.
HPQ will update investors once the necessary authorizations have been received. Once the new NI 43-101 qualification report has been completed and the listing application has been filed with the exchange, HPQ-Silicon will be able to announce the ex dividend date. The corporation is aiming to have the spin-off completed and dividend shares of the new subsidiary delivered to shareholders during Q4 2016.
Private placement completion
The company has completed a private placement consisting of an aggregate amount of 2,925,000 units at 19 cents per unit, for gross proceeds of $555,750.
Each unit comprises one common share and one-half common share purchase warrant of the company. Each full warrant entitles the holder thereof to purchase one common share of the capital stock of the company at an exercise price of 35 cents during a period of 18 months from the date of closing of the placement.
In connection with the above placement, the company paid a cash finder's fee of $16,340 and will issue 86,000 options to Foster and Associates of Toronto, Ont. Each option will give the owner the right to purchase one unit at 19 cents for 18 months.
Each unit comprises one common share and one-half common share purchase warrant of the company. Each full warrant entitles the holder thereof to purchase one common share of the capital stock of the company at an exercise price of 35 cents during a period of 18 months from the date of closing of the placement.
Bernard Tourillon, chairman and chief executive officer of Uragold, stated: "We are very encouraged by the strong unsolicited demand generated by this private placement; this bodes well for the future developments of both of HPQ Silicon Resources Inc. and Beauce Gold Fields Inc. We are also encouraged by the continued strength of the price of gold and the market values being attributed to small-cap gold companies, which we believe will unlock meaningful value for our shareholders receiving dividend shares in Beauce.
Funds raised will be used to make payments to PyroGenesis Canada Inc., as per the modified agreement, and the next series of lab-scale research and development tests announced on Sept. 1, 2016.
We seek Safe Harbor.
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