HPQ Silicon Resources Inc.
(“HPQ” - “The Company”) TSX-V: HPQ
; FWB: UGE
; Other OTC: URAGF;
(“HPQ”) is pleased to update shareholders on the Corporation’s
plans for 2020.
KEY 2020 PUREVAP™ DEVELOPMENTS THAT WILL
DRIVE HPQ FORWARD
1. Gen 3
PUREVAP™ QRR Pilot Plant operational Q1 2020
PyroGenesis Canada Inc. (TSX-V: PYR)
(“PyroGenesis”) informed HPQ that the Pilot Plant commissioning and
testing program will start in full force Q1 2020.
“As previously discussed, a good part of the
past year saw us divert assets from paying projects to non-paying
projects. This enabled PyroGenesis to secure the large
breakout contract it recently announced as well as the upcoming
Navy project, which was also recently announced. As a result,
our signed backlog increased from $6MM in Q2 2019 to almost $30MM
at the end of Q3 2019. The successful closing of the Navy
project will further increase this backlog by an additional $13MM.
This increase in backlog de risks the company significantly,
all to the benefit of our clients, like HPQ, and their
shareholders,” said P. Peter Pascali, President and CEO of
PyroGenesis Canada Inc. “We are now in position to re-focus,
and accelerate, the PUREVAP initiative focus on the multitude of
opportunities that have come to light since defining our original
mandate. As a result, we are confident that HPQ is going to
make some significant headway over the coming months, the least of
which will be to start the Gen3 PUREVAPTM Plant commissioning and
testing program.
“HPQ congratulates our partner P. Peter Pascali
and his PyroGenesis team on their $20 million contract award, which
once again proves their ability to commercialize high tech
applications on a global scale,” said Bernard Tourillon, President
& CEO of HPQ Silicon. “With the PUREVAPTM Pilot Plant becoming
operational in Q1 2020, we now have even greater confidence in our
joint ability to deliver the critical Silicon material required by
the surging Li-ion battery market in 2020 and beyond.”
The PUREVAP™ QRR technology is a unique
carbothermic process that will allow HPQ to have a significant
impact, short and long term, on the following Silicon (Si) markets
and industries:
2. Nanoscale
Structure Silicon Powders manufacturing for Li-ion
batteries
HPQ and PyroGenesis recently
announced plans regarding the creation of a Joint Venture to
produce Nanoscale Structure Silicon (Si) powders for Li-ion
batteries. In Q1 2020, the plan is to have a modified Gen2
PUREVAPTM reactor operational, in parallel with the Pilot Plant,
validating that our approach works and producing Nanoscale
Structure Silicon (Si) powders samples for industry participants
and research institutions.
Nanoscale Structure Silicon Powders improve
Li-ion battery performance but high-performance Silicon (Si) anodes
made using powders selling for US$ 30,000/kg1 are not commercially
feasible. Combining HPQ PUREVAP™ Quartz Reduction Reactor
("QRR") technology with PyroGenesis Plasma Atomization knowhow to
produce Nanoscale Structure Silicon (Si) powders represents a
unique multibillion-dollar business opportunity that could
subsequently lead to their wide scale adoption in the battery
market. If this occurs, HPQ and PyroGenesis would then be
well positioned to assume a dominant market position.
Silicon’s potential to meet energy storage
demand is undeniable and generating massive investments, as well
as, serious industry interest, so HPQ and PyroGenesis timing could
not be better. A recent report by Wood Mackenzie Power
projects that energy storage deployments are estimated to grow
1,300% from a 12 Gigawatt-hour market in 2018 to a 158
Gigawatt-hour market in 2024. An estimated US$71 billion in
investments will be made into storage systems where batteries will
make up the lion’s share of capital deployment.
3. Porous
Silicon wafers for solid state Li-ion Batteries
During Q3 2019, HPQ started discussions with a
battery manufacturer regarding using Silicon produced by our Gen3
PUREVAPTM QRR pilot plant to manufacture porous silicon wafers
needed for their operations. Furthermore, HPQ negotiated with
Apollon Solar an amended agreement that broadens the scope of the
2017 collaboration to include, going forward, evaluating
manufacturing porous Silicon wafers for solid-state Li-Ion
batteries combining their patented process with Silicon (Si)
produced with HPQ PUREVAPTM QRR.
In November 2019, HPQ and its partner Apollon
Solar SAS, acting as one party, signed a non-disclosure agreement
(“NDA”) with the battery manufacturer for the purposes of
exchanging technical information and sending testing
materials. We are still at the beginning of the process of
exchanging technical information and yet we are already looking
into the possibility of supplying the battery manufacturer with the
first Silicon wafer for testing by year end or beginning of
2020.
The probabilities that the discussions started
under NDA will evolve during Q1 2020 to a more formal process are
very encouraging.
4. High
Purity Silicon Oxide (SiOx) Nanopowders for Li-ion
Batteries
In addition to its wafer work, HPQ intends to
study, during H1 2020, the possibility of utilizing Apollon Solar
patented process to optimize the porous structure of HPQ PUREVAPTM
Silicon between Microporous (pore size <5nm), Mesoporous (pore
size 5nm – 50nm) and Macroporous (pore size >50nm) in order to
evaluate the potential of producing, low cost, High Purity SiOx
Nanopowders.
The infancy of Si anode technology base on
Nanoscale Structure Silicon Powders explains why presently only
limited performance improvement are obtained using High Purity
Silicon Oxide (SiOx) Nanopowders, selling for about US$ 100/kg2,
used in a blended form with graphite in traditional Li-ion
batteries. The quantity used is typically less than 5 wt% of
the material used to make the batteries, yet even at these levels
of utilization, this is estimated to represent an addressable
market of US $ 1B by 20223 expanding at a CAGR of 38.9% between
2019 – 2024.
5. Standard
purity Silicon (“Si”) (up to 2N Purity)
Up to now, market participants with significant
quartz assets have shown a keen interest in our process. As such,
HPQ anticipates silicon industry participants will show a keen
interest in PUREVAPTM once the Pilot Plant is operational and
validates our unique operational advantages.
The addressable market for Mg Si is in the
multi-billion range with demand projected to increase by a CAGR of
19% over the next 5 years (US$ 7.5B in 2018 to US$ 12B in
2023)4. The bulk of the growth is expected to come from the
2N segment of the market, where the PUREVAP™ QRR process should
have massive opex and capex advantage over traditional
manufacturers.
6. Solar
Grade Silicon using a PUREVAPTM UMG metallurgical
process
The market for Solar Grade Silicon is massive
and evolving at such an accelerated pace that some of our original
product development hypothesis are not as relevant as before.
Having said this, working with Apollon Solar, we strongly believe
that if the PUREVAP™ QRR can produce, as we believe it can, Si
material of 4N+ purity with low boron count (< 1 ppm), we can
develop a very competitive UMG Metallurgical route to produce Solar
Grade Silicon.
OTHER CORPORATE NEWS
1. ANNUAL
MINIMUM ROYALTIES PAYMENT DUES TO PYROGENESIS
Under the terms of our Agreement with
PyroGenesis, HPQ was obliged to pay minimum royalty payment
obligations of $150,000 for 2018 and $200,000 for 2019. Due
to delays in the project beyond HPQ’s control, PyroGenesis has
agreed to wave HPQ minimum royalty payment obligations for 2018 and
2019. This represents a Q4 2019 reduction in HPQ current
liabilities of $350,000. Minimum royalties’ obligations will
resume with the scheduled 2020 payment to PyroGenesis.
2. WARRANTS
EXTENSION
HPQ Board of Directors has authorized the
application to the TSX Venture Exchange (the “Exchange”) for
approval of the extension, until January 31, 2022, of the exercise
date of 4,152,000 outstanding common share purchase warrants (the
“Warrants”) issued by the Company July 17, 2018. The
4,152,000 Warrants are set to expire on January 17, 2020 and have
an exercise price of $0.155. As of today, none of these
purchase warrants has been exercised. All other terms and
conditions of the Warrants will remain the same. The proposed
extension is conditional upon the receipt of the approval of the
Exchange.
3. DEBT FOR
SHARES
In accordance with the agreement between
HPQ-Silicon and Agoracom, entered into on July 15, 2018 for the
term ending July 15, 2020, HPQ-Silicon board has approved the
issuance of 156,944 common shares at a deemed price of 9 cents per
share to pay $14,125 for services rendered during the period from
January 16, 2019 ending April 15, 2019, HPQ board has also approved
the issuance of 156,944 common shares at a deemed price of 9 cents
per share to pay $14,125 for services rendered during the period
from April 16, 2019 ending July 15, 2019, and HPQ board has also
approved the issuance of 166,176 common shares at a deemed price of
8.5 cents per share to pay $14,125 for services rendered during the
period from July 16, 2019 ending October 15, 2019. Each share
issued pursuant to the debt settlement will have a mandatory four
(4) month and one (1) day holding period from the date of
closing.
About Silicon
Silicon (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 Silicon
HPQ Silicon Resources Inc. is a TSX-V listed
company developing, in collaboration with industry leader
PyroGenesis (TSX-V: PYR) the innovative PUREVAPTM “Quartz Reduction
Reactors” (QRR), a truly 2.0 Carbothermic process (patent pending),
which will permit the transformation and purification of quartz
(SiO2) into Metallurgical Grade Silicon (Mg-Si) at prices that will
propagate its significant renewable energy potential.
HPQ is also working with industry leader Apollon
Solar to develop: Porous silicon wafers manufacturing using
PUREVAP™ Silicon (PVAP Si) that can be used as anode for
all-solid-state and Li-ion batteries; and a metallurgical pathway
of producing Solar Grade Silicon Metal (SoG Si) that will take full
advantage of the PUREVAPTM QRR one-step production of high purity
silicon (Si) and significantly reduce the Capex and Opex associated
with the transformation of quartz (SiO2) into SoG-Si.
HPQ focus is becoming the lowest cost producer
of Silicon (Si), High Purity Silicon (Si), Porous Silicon Wafers
and Solar Grade Silicon Metal (SoG-Si). The pilot plant equipment
that will validate the commercial potential of the process is on
schedule to start in 2019.
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
contactBernard J. Tourillon, Chairman, President and CEO
Tel (514) 907-1011 Patrick Levasseur, Vice-President and COO Tel:
(514) 262-9239 http://www.hpqsilicon.com Email:
Info@hpqsilicon.com
1 Source: Quotation from a producer (Confidential), Media
article
2 Advanced Battery Materials, Chapter 5: Practically Relevant
Research on Silicon-Based Lithium-Ion Battery Anodes (page 271)
3 Source Marketandmakerts.com
4 CRU – Silicon Market Outlook – November 14, 2018 (Pages 20 -
23)
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