Insurance to cover its $6.2 Million replacement cost secured
MONTREAL, Canada, May 19th, 2022 — HPQ Silicon Resources Inc. (“HPQ” or the “Company”) (TSX-V: HPQ) (FWB: UGE) (OTCQX :HPQFF), an innovative silicon solutions and technology development company, would like to inform shareholders that with the forthcoming start of the final phase of the PUREVAP™ Quartz Reduction Reactor (QRR) Research and Development program, and the imminent completion of the commissioning of the pilot system, time has arrived for the ownership of the pilot system to be transferred to HPQ-Silicon from PyroGenesis Canada Inc. (TSX: PYR) (NASDAQ: PYR).
The plan as always been to transfer the ownership of the pilot systems from PyroGenesis to HPQ Silicon prior to the reactor start, since under the terms of the July 2016 agreement, HPQ-Silicon, is the sole party entitled to claim R&D credits associated with the PUREVAP™ QRR pilot plant system operations.
Transferring the ownership required HPQ-Silicon to purchase insurance to cover the $6.2 million 2022 replacement cost, estimated by PyroGenesis, of HPQ PUREVAP™ QRR pilot system. Based on PyroGenesis updated quotation, one thing is very clear, prices have increased significantly since the July 2016 signing of the agreement. HPQ paid, as per the 2016 agreement, $4,240,000 for design, fabrication and commissioning the pilot system. Current replacement cost is $6.2 million for the fabrication and commissioning of a new pilot system.
HPQ CEO Bernard Tourillon commented: “It may have taken time to get here, but the decision to enter early into a long-term and mutually beneficial relationship with PyroGenesis to harness the potential of new silicon materials manufacturing will soon come to fruition. 2022 and beyond are going to be years for Silicon and our unique and innovative processes of manufacturing and commercializing silicon and nanosilicon materials needed for an ESG-demanding industrial landscape is one of our greatest strengths going forward.”
HPQ Silicon is a Quebec-based TSX Venture Exchange Tier 1 Industrial Issuer. With the support of world-class technology partners PyroGenesis Canada and NOVACIUM SAS, the company is developing new green processes crucial to make the critical materials needed to reach net zero emissions.