Homerun Resources Partners with Local Firm for High Purity Silica Sand Processing in Belmonte District

Homerun Resources Inc. has entered into a non-binding Memorandum of Understanding (MOU) with a well-established local partner in Brazil’s Belmonte Silica District. This strategic MOU, signed with an experienced and respected partner, marks a significant step forward for Homerun as both companies possess assets in the region. The partnership is aligned with Phase 2 of Homerun’s Business Plan Roadmap and its 40-year lease agreement with Companhia Baiana de Pesquisa Mineral (CBPM).

The local partner operates a silica sand processing facility with dry processing capabilities and is prepared to swiftly invest in upgrading these facilities. Together, Homerun and the partner have agreed on two cooperation models for silica sand processing.

Under the first model, “Service Processing,” the partner will act as a service provider for extracting and processing Homerun’s silica sand exclusively. This includes extraction, processing, and sizing, with delivery options available in dry bulk or in 1-tonne bags. Homerun will pay the partner a service fee per tonne for these services.

In the second model, “Product Sales,” the partner will handle the extraction and processing of silica sand sourced from both Homerun and its own reserves. The processed sand will then be available for sale, either to Homerun at a negotiated price or directly to Homerun’s end customers. In the latter case, Homerun would be compensated by the partner for the sales. This dual approach provides flexibility for Homerun to access processed silica sand without heavy upfront capital expenditures typically needed to build new processing facilities.

This collaboration with a prominent player in Brazil’s silica sand industry is central to Homerun’s logistics and cash flow strategy. “We’re thrilled to establish this partnership with one of Brazil’s leading organizations in the silica sand sector,” stated Armando Farhate, Homerun’s COO. He emphasized that the arrangement not only supports Homerun’s goals but also enables cost-effective access to processing capabilities, helping the company minimize capital expenditures for both current and future needs.

While the MOU highlights Homerun’s commitment to achieving its strategic objectives efficiently, the identity of the partner will remain confidential at their request. This partnership sets a strong foundation for Homerun’s ongoing and future operations in the Belmonte Silica District, bolstering the company’s position in the silica sand industry and expediting its pathway to revenue generation.

Homerun is dedicated to developing industrial materials and technologies that support global clean energy and climate objectives. The Company is publicly traded on the TSX Venture Exchange under the symbol HMR.