Vancouver, B.C.: Homerun Resources Inc. (“Homerun” or the “Company”) (TSXV: HMR) (OTCQB: HMRFF) is pleased to announce that the Company has signed a Memorandum of Understanding (MoU) with CBPM (Companhia Baiana de Pesquisa Mineral), BahiaGás (Companhia de Gás da Bahia), SECTI (Secretaria de Ciência, Tecnologia e Inovação) and the Municipality of Belmonte, aiming to immediately:
- Consolidate strategic alliances to ensure the effective implementation and development of Homerun’s Industrial Projects, covering everything from extraction and processing to the transformation of high value-added mineral resources, with goals and schedules defined in specific instruments arising from this MoU;
- Integrate actions to promote science, technology, innovation, infrastructure, professional qualification and clean energy; and
- Promote a new cycle of regional development based on a diversified, sustainable economic matrix aligned with the guidelines of the Government of the State of Bahia.
This MoU has been developed to support the installation of Homerun’s initial 120,000 ton per year Silica Processing facility and the 365,000 ton per year Solar Glass manufacturing facility in the Municipality of Belmonte, Bahia, Brazil, ensuring the establishment of the entire value chain, from mineral extraction to high value-added final products, in Belmonte, maximizing the socioeconomic and environmental benefits for the State of Bahia. Many initiatives detailed within this MOU have already made considerable progress to date, and we are thrilled with the overwhelming support from all the Parties.
Brian Leeners, CEO of Homerun stated, “We want to thank all our partners at every level from the Municipality of Belmonte to the State Government of Bahia. The Team at Homerun has achieved another major milestone to the benefit of our stakeholders and the people of Bahia. First our unique resource and now the land, infrastructure and services to take that resource to the production of solar glass and other in-demand HPQ materials. We look forward to the day when the facilities on this land are providing best-in-class solutions into both the domestic and global marketplace. I want to personally thank Antonio Vitor, our Country Manager, for the huge amount of time and energy that has gone into nurturing this transformative partnership.”
HIGHLIGHTS OF THIS MOU INCLUDE:
- Donation of land area with a minimum size of 60 hectares within 30 days for the development of Homerun’s Silica Processing facility and the Solar Glass Manufacturing facility.
- Granting of tax incentives for optimization and operation of Homerun Projects.
- Expedited licensing, permitting and priority approval flow for processing and project documents.
- Commitment of continuous and safe natural gas supply from Bahiagás.
- Improvement and paving of local roads providing access to donated area.
- Technical and professional training, education, fundraising with a focus on strengthening the Homerun projects in Belmonte and generating regional knowledge and technical training.
- Formalization of a fund aimed at the development of education in the region and surrounding areas.
- Generating approximately 500 direct jobs, 2,800 indirect jobs and up to 1,000 temporary jobs during the construction phase, with an investment of up to R$1.8 billion for the development of Homerun’s facilities.
DETAILED DUTIES OF THE PARTIES:
Municipality of Belmonte
- Ensure the donation of a land area with a minimum size of 60 hectares (sixty hectares), duly regularized (with updated registration and free of any encumbrances), located in an industrial zone or with potential for such, and with easy access to basic infrastructure (medium/high voltage electricity nearby, availability of water for industrial use and potential for connection to the future natural gas network), and formalizing the donation through a specific municipal law to be approved by the City Council within 30 (thirty) days;
- Ensure the approval of construction and operating plans and licenses;
- Coordinate with the City Council the granting of tax incentives that can optimize the implementation and operation of the Homerun project, presenting a specific tax incentive bill within 90 days and seeking its approval within 150 days;
- Coordinate, together with the competent agencies, the improvement and paving of the local roads providing access to the donated area, with an execution schedule to be defined in conjunction with Homerun within 6 (six) months after the donation of the property;
- Commit to coordinating, together with the electricity concessionaire and the competent agencies, the stable supply and in a quantity adequate to the plant’s demand (with a service plan within 12 months) after the donation of the property;
- Commit, together with the responsible entities, to the planning and execution of the expansion of the basic sanitation network, in order to meet the demand of the enterprise and its workers (with an expansion plan of up to 24 months);
- Work on the coordination of housing solutions, in partnership with state and federal programs, aiming to serve the workers who move to Belmonte;
- Carry out a detailed mapping and actively mobilize the local workforce to participate in the professional qualification programs to be implemented, establishing a registry of candidates with their qualifications and experiences (to be updated quarterly) and organizing selection processes in coordination with Homerun, with the aim of ensuring that at least 70% of the unskilled workforce and 30% of the skilled workforce are recruited locally;
- Request the State of Bahia to raise the level of competence of the Municipality for environmental licensing, in order to license the project; and
- Collaborate with Homerun in obtaining municipal licenses and permits (construction permit, operating license, etc.), prioritizing the analysis of processes and seeking to reduce processing times, with the establishment of a priority approval flow for project documents.
Bahiagás (Bahia Gas Company)
- Commit to supplying natural gas to fully meet the energy needs of the Homerun industrial unit in Belmonte, with a special focus on the essential supply for the fusion furnace and forehearth. This supply will be carried out in strict compliance with the technical parameters already defined;
- Ensure the continuous and safe supply of natural gas that must comply with the specifications contained in ANP Resolution No. 16 of 17.06.2008, or the regulations that replace it;
- Provide a nominal gas consumption of 6,100 Nm³/h, meeting the operational demand of the industrial plant under normal production conditions, guaranteeing the stability of the production processes even at times of greater demand;
- Ensure a stable and adequate supply pressure, maintained between 4 bar(g) and 6 bar(g), measured precisely at the outlet of the supply station located at the Homerun factory facilities, with the installation of high-precision pressure measurement and control equipment and periodic inspections to ensure the integrity of the system;
- Build the infrastructure required to supply natural gas to Homerun, subject to obtaining any and all regulatory authorizations required for the construction of the infrastructure, in accordance with applicable legislation, in addition to the necessary procedures for contracting a third-party company for said construction through a public bidding process. Regulatory authorizations include environmental licenses, approvals, authorizations from potential interferers and effective implementation of the right-of-way, aiming to guarantee a reliable and long-term supply network for Homerun and for the future industrial development of the region; and
- Sign a specific Natural Gas Supply Contract (CFGN) with Homerun within 90 (ninety) days, establishing a future date for the start of gas supply consistent with the completion of the infrastructure to be built, subject to the formal submission of technical information (equipment, operating regime, operating pressure and maximum hourly flow rate) by Homerun, detailing the firm and interruptible contractual volumes, delivery conditions, measurement points, applicable tariffs and review mechanisms, as well as the responsibilities of each party in relation to the connection infrastructure. This contract must provide for a guaranteed minimum volume of natural gas supply, based on the daily contractual quantity informed by Homerun.
SECTI (Secretariat of Science, Technology and Innovation)
- Diagnose the technological demands of the project and the scientific capabilities of the Bahian ecosystem applicable to its value chain;
- Ensure, in conjunction with CBPM, the qualification of the local workforce through the implementation of technical and professional training courses geared towards the demands of the Homerun project in Belmonte, ensuring that the region’s population is able to occupy the opportunities generated by the sustainable mining production chain;
- Establish agreements with universities, institutes and technology parks to foster applied research, innovation and the development of technological solutions geared towards the high-purity silica production chain, with a focus on strengthening the Homerun project in Belmonte and generating regional knowledge and technical training;
- Work on prospecting and raising funds from development institutions, with the aim of supporting innovation, professional training and technological development projects linked to the sustainable mining chain, especially strategic initiatives such as the Homerun project in Belmonte;
- Ensure the training of specialized human capital through scholarship programs, technological residencies and technical courses; and
- Encourage the installation of R&D centers and testing and certification laboratories.
CBPM (Companhia Baiana de Pesquisa Mineral)
- Ensure technical support for the project in the stages of requesting, obtaining and maintaining mining rights with the ANM;
- Ensure technical support for the project in the stages of requesting, obtaining and maintaining environmental licenses with INEMA and the Municipal Government of Belmonte
- Act as an intermediary with the State Government in the inter-institutional negotiations necessary for the advancement of the project;
- Promote coordination with other players in the mineral sector to identify synergies and complementary opportunities that can optimize the development of the project and the region;
- Propose projects to improve industrial processes and reuse waste;
- Organize technical events, workshops and seminars on sustainable mining, in addition to producing videos, booklets and technical presentations to publicize the project to the community and strengthen social and institutional support for the initiative;
- Encourage the adoption of green mining practices, with the use of renewable energy, water reuse and waste reduction;
- Support, in partnership with SECTI, professional training and qualification programs aimed at the demands of the Homerun project in Belmonte, promoting productive inclusion and strengthening the local workforce; and
- Establish, in partnership with Homerun, a fund aimed at the development of education in the region and surrounding areas, ensuring regular contributions, with a focus on improving the quality of education, technical training and productive inclusion of the local population.
Homerun
- To fully implement a unit for the industrialization of industrial sand in the Municipality of Belmonte, ensuring the addition of value to the raw material and contributing to the strengthening of the local production chain;
- To establish, in partnership with CBPM, a fund aimed at the development of education in the region directly impacted by the activities of the mine and the industrial unit, ensuring regular contributions, with a focus on improving the quality of education, technical training and productive inclusion of the local population;
- To provide, within 90 (ninety) days after receiving the property where the plant will be installed, all the technical information, studies and documents necessary for the development of the projects that may be prepared by Bahiagás, with a view to making the supply of natural gas to the industrial plant viable;
- To provide public entities with the technical, economic and environmental data necessary for decision-making and planning;
- Invest up to R$1.8 billion in the implementation of the project, with the expectation of generating approximately 500 direct jobs, 2,800 indirect jobs and up to 1,000 temporary jobs during the construction phase;
- Complete Phase I of the project within 12 months from the date of obtaining the construction permit;
- Complete Phase II within 24 months from the start of construction, under penalty of the property donated to the Municipality being returned, except in cases of unforeseeable circumstances or force majeure duly justified;
- Cooperate with state and municipal agencies, whenever required, for the proper processing of administrative, environmental and regulatory processes related to the implementation and operation of the project;
- Invest in the qualification and hiring of local labor, prioritizing regional development;
- Establish agreements with universities and ICTs for technology transfer and applied innovation; and
- Act with socio-environmental responsibility, promoting good ESG practices.
The term of validity of this MOU will be 36 (thirty-six) months and may be extended by consensus of the Parties to the MOU.
About Homerun (www.homerunresources.com)
Homerun (TSXV: HMR) is a vertically integrated materials leader revolutionizing green energy solutions through advanced silica technologies. As an emerging force outside of China for high-purity quartz (HPQ) silica innovation, the Company controls the full industrial vertical from raw material extraction to cutting-edge solar, battery and energy storage solutions. Our dual-engine vertical integration strategy combines:
Advanced Materials
- Operating through ownership and partnerships to control two of Brazil’s premier Silica Districts with in-place logistics.
- Pioneering zero-waste thermoelectric purification and advanced materials processing technologies with University of California – Davis.
- Developing silicon carbide and thermoelectric materials for next-generation battery solutions.
Energy Solutions
- Building Latin America’s first dedicated high-efficiency solar glass manufacturing facility (365,000t/yr capacity).
- Commercializing the integration of Perovskite PV on solar glass technology (PSC is at +25% solar efficiency and now commercializing globally as Tandem Solar).
- Partnering with U.S. Dept. of Energy/NREL on the development of the Enduring long-duration energy storage system utilizing the Company’s high-purity silica sand for industrial heat and electricity arbitrage and complementary silica purification.
With six profit centers built within the vertical strategy and all gaining economic advantage utilizing the Company’s HPQ silica, across, solar, battery and energy storage solutions, Homerun is positioned to capitalize on high-growth global energy transition markets. The 3-phase development plan has achieved all key milestones in a timely manner, including government partnerships, scalable logistical market access, and breakthrough IP in advanced materials processing and energy solutions.
Homerun maintains an uncompromising commitment to ESG principles, deploying the cleanest and most sustainable production technologies across all operations while benefiting the people in the communities where the Company operates. As we advance revenue generation and vertical integration in 2025, the Company continues to deliver shareholder value through strategic execution within the unstoppable global energy transition.
On behalf of the Board of Directors of
Homerun Resources Inc.
“Brian Leeners”
Brian Leeners, CEO & Director
[email protected] / +1 604-862-4184 (WhatsApp)
Tyler Muir, Investor Relations
[email protected] / +1 306-690-8886 (WhatsApp)
FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE
The information contained herein contains “forward-looking statements” within the meaning of applicable securities legislation. Forward-looking statements relate to information that is based on assumptions of management, forecasts of future results, and estimates of aMoUnts not yet determinable. Any statements that express predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance are not statements of historical fact and may be “forward-looking statements”.
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