HPQ-Silicon Resources Inc. said Aug. 13 that it has secured C$5.3 million in financing from the Quebec government and PyroGenesis Canada Inc., its partner in developing the PUREVAP process to convert quartz into high purity silicon metal for use in solar panels.

The proceeds will be utilized on the development of the PUREVAP process, the company said.

Under the capital raising, the Quebec government will subscribe for C$1.8 million in convertible debentures maturing in five years, with interest set at 5% per annum. The bonds may be converted into common shares at 12 cents apiece.

PyroGenesis has also closed a private placement in the company of 16,250,000 units at 12 cents per unit for proceeds of up to C$2.0 million, with each unit comprising 1 share and 1 share purchase warrant. Each warrant entitles PyroGenesis to purchase 1 additional share at a price of 17 cents within 36 months.

PyroGenesis will also grant the company an equity line of credit of C$1.5 million for any unexpected project costs.