Homerun is pleased to announce that on December 11 2023, the Company completed another significant milestone in its Strategic Plan with the execution of the signed Agreement between Homerun Resources and Companhia Baiana de Pesquisa Mineral (“CBPM” and the “CBPM Agreement”) detailing the terms regarding Homerun’s exclusive right to extract high purity silica sand sourced from CBPM’s concessions near Santa Maria Eterna, Belmonte, Bahia, Brazil. Companhia Baiana de Pesquisa Mineral is the mineral research and development company of the State of Bahia, Brazil.
Brian Leeners, CEO of Homerun stated, “We are extremely excited to have exclusive access to this incredibly high-grade HPQ silica sand supply in Bahia, Brazil and equally excited about our growing partnership with CBPM and the State of Bahia, which is the pivotal relationship in the extension of our business plan, from extraction through processing and on to end-use manufacturing. CBPM shares our vision that this amazing resource can be leveraged with environmentally sound development, that will bring long-term economic and social benefit to the people of Bahia.”
Under the CBPM Agreement, Homerun will pay an extraction royalty of R$50 (US$10.00) per tonne of extracted silica sand. Any of the extracted silica sand sold outside of Brazil will be subject to a further five percent (5%) gross sales royalty in addition to the above extraction royalty. Homerun will make minimum annual royalty payments corresponding to the sale of a minimum annual production of twelve thousand (12,000) tons of processed sand. In addition to the above.
* CEO Brian Leeners at signing ceremony announcing the partnership with Governor Jerônimo Rodrigues
* Homerun team in the Santa Maria Eterna Formation in Bahia, Brazil.
Homerun secured a partnership with largest silica company in Brazil for supply and processing of the high purity silica sands originating from the Belmonte Silica District. This partnership is a key element of Phase 2 of the Company’s Business Plan Roadmap, and in line with the commitment under its partnership with Companhia Baiana de Pesquisa Mineral (CBPM), within the scope of the 40-year lease agreement between the parties. Securing the Partner’s services is a fundamental cornerstone for the execution of the Company’s logistics plan to cashflow.
Both Homerun and the Partner have assets under ownership or control in the Belmonte Silica District.
The Partner and Homerun are willing to cooperate within two modalities:
* Drilling and sampling from Homerun’s MRE
Extensive third-party testing verifies and demonstrates that the raw silica sand grade averages +99.8% SiO2 and contains very low levels of impurities. *The Company will initiate further testing on the reduction of residual impurities after standard processing, through a combination of thermal application and acid leaching, to upgrade the current raw silica sand to higher grade HPQ.
*The high purity quartz sand of the Santa Maria Eterna formation is a promising ore resource. It was likely formed by silica precipitation from a marine environment, generating an ore with very low impurities. The resource is remarkably homogeneous and is viable as raw material for silica glass production and has showed adequacy for several applications.
Nearby ports allow for economic storage and shipping to customers in Brazil and around the world.