HPQ Silicon Resources Inc is pleased to announce that it has signed an option agreement with Golden Hope Mines in relation to the advancement of the Bellechasse-Timmins gold deposit located in St-Magloire in the Beauce region of southeastern Quebec.
On March 24, 2017 HPQ announced the signing of a MOU with Golden Hope Mines leading to a new option agreement between the two companies. This new option agreement ends the legal dispute between the two companies and establishes a new agreement for the advancement of the Bellechasse-Timmins gold deposit into a producing mine.
Patrick Levasseur, President and COO of HPQ Silicon stated, "I look forward to working with Golden Hope Mines to advance the B-T gold deposit. It's exciting to have this opportunity to develop the potential of the B-T property while also advancing HPQ's Beauce Gold property both of which are located in the Bellechase Gold Belt."
Frank Candido, President, Director of Golden Hope Mines Limited "We are extremely pleased to be moving forward with HPQ and their team on the terms of this new option agreement. We believe that this new option agreement will benefit both companies and especially our shareholders. We expect to update our shareholders of all advancements and progress as it unfolds."
KEY POINTS OF THE NEW OPTION AGREEMENT
1. The New Agreement provides HPQ with an option to earn a 30% undivided interest in the B-T Deposit by completing, at its cost, a list of actions specified milestones and time deadlines in the New Option Agreement.
2. The New Option Agreement provides HPQ with a further option to earn an additional 20% undivided interest in the Deposit (total 50%), following the completion of all specified actions, by securing the required financing to fully fund the commercial production of the Deposit in accordance with an Economic Assessment.
3. HPQ will subscribe to a private placement financing of GNH in the amount of $150,000 at a minimum price of $0.20 cents per share within 45 days of this announcement subject to all regulatory approvals.
4. An assignment of HPQ's rights and obligations under the New Agreement to HPQ's wholly-owned subsidiary Beauce Goldfields (BGF) may take place upon completion of certain conditions stipulated in the New Agreement.
5. In the event that HPQ does assign its rights and obligations under the New Agreement to BGF, GNH shall receive $50,000 in shares of BGF, subject to required approvals.