HPQ-Silicon to approve gold asset spinoff October

2016-09-16 10:13 ET - News Release

Mr. Bernard Tourillon reports

HPQ PROVIDES ADDITIONAL UPDATE ON STATUS OF GOLD ASSET SPIN-OFF

HPQ-Silicon Resources Inc. has provided the following updates regarding the status of its gold asset spinoff.

Spinoff and dividend of gold assets

Further to the press release of Sept. 7, 2016, the spinoff of HPQ-Silicon's gold assets into a fully owned subsidiary is proceeding as follows.

1. The corporation has retained the services Dr. Remi Charbonneau, PhD (PGeo), of Inlandsis Consultants to complete the required update of the Beauce placer National Instrument 43-101, which is required to qualify the property as a property of merit for the listing application of Beauce Gold Fields Inc. Dr. Charbonneau is a specialist in glacial till geology and gold placers. He has worked with junior and senior exploration companies, including Virginia Gold Mines and Goldcorp. He also worked on the Beauce project in 2012-2013, which will greatly streamline the process going forward.
2. The boards of both HPQ-Silicon and Beauce Gold are scheduled to meet at the beginning of October to approve all the relevant assets transfers and contractual agreements between the companies and approve the Beauce Gold Fields Inc. listing application with the exchange.
3. Once the listing application has been filed with the exchange and the necessary authorizations have been received, the board of HPQ-Silicon will be able to declare the ex dividend date.

Bernard Tourillon, chairman and chief executive officer of HPQ-Silicon, stated, "The spin-off project is moving forward and we are 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 Gold Fields."

Other corporate matters

Shares for services program

In accordance with the agreement between HPQ-Silicon and Agoracom (see Uragold press release July 18, 2014), extended by both parties for an additional year, from July 15, 2016, to July 15, 2017, under the same terms and conditions, the HPQ-Silicon board has approved the issuance of 49,560 common shares at a deemed price of 28.5 cents per share for the outstanding debt of $14,125 for services rendered during the period from May 16, 2016, ending July 15, 2016.

Options distribution

HPQ-Silicon has granted 400,000 stock options to a director of the corporation. The stock options are exercisable for a period of five years from the date of grant at an exercise price of 19 cents per share.

The options have been granted under and are subject to the terms and conditions of the company's stock option plan.

Modification to stock option plan

HPQ-Silicon's board of directors has approved the modification of the total number of shares that may be issued pursuant to its stock option plan, increasing it by 5.07 million shares from 8.93 million shares to 14 million shares. The maximum number of common of shares that may be issued under the plan shall be equivalent to less than 10 per cent of the issued and outstanding common shares of the corporation. The modification is subject to regulatory approval.

We seek Safe Harbor.

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