Homerun Resources Inc. Executes Final Agreement with CBPM for High-Purity Quartz Silica in Bahia, Brazil
Vancouver, December 12, 2023 - Homerun Resources Inc. (TSXV: HMR) (OTCQB: HMRFF) ("Homerun" or the "Company") is pleased to announce that on November 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.
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Henrique Carballal, President of CBPM, stated, "Firstly, it is an immense satisfaction to be able to build a partnership with a company like Homerun, which will prospect industrial sand in the municipality of Belmonte and will process this industrial sand, transforming it into pure silica and then into high technology products, such as the cell that will enhance the production of photovoltaic energy in Brazil. This places the state of Bahia in a condition of economic and social development more focused on enhancing green industry, expanding an industrialization policy, associated with our mineral potential, which today is focused on strategic minerals for the energy transition. Therefore, we believe that the partnership between CBPM and the State Government with the company Homerun will be of fundamental importance in the development of other policies aimed at mineral development, focusing on the energy transition for the growth of Bahia in the areas: social, environmental and economic." (Translated from original Portuguese)
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.
Homerun has further agreed to implement, jointly with CBPM, a fund for the development of education in the municipalities where Homerun's operations related to the extraction of the silica sand and the industrial units related to the processing and subsequent end-use manufacturing that takes place. The parties will contribute equally, with CBPM contributing ten percent (10%) and Homerun contributing an additional 10% of the amount of the royalties paid under the CBPM Agreement. The administration of the fund will be exercised by a representative of CBPM and a representative of Homerun, based on bylaws to be prepared jointly by the parties, subject to the relevant laws and regulations of Bahia and Brazil.
The term of the CBPM Agreement is for an initial twenty-year term, from the date of execution with an additional twenty-year term if the CBPM Agreement is in good standing at the end of the initial term. If the Company transfers the CBPM Agreement to another party, CBPM will receive one percent (1%) of the amount received by the Company for the transfer.
Homerun will pay R$1,000,000 (US$200,000) to CBPM upon execution of the CBPM Agreement and will pay another R$1,000,000 (US$200,000) payment upon receipt of Brazilian Regulatory Approvals of the Company's extraction plan. It should be noted historically that extraction activities in the district have received regulatory approval.
The CBPM Agreement will be subject to the US$1.00 per tonne royalty under the Company's agreement with Beko Invest Ltd. ("Beko") which applies to every tonne of silica extracted and sold by the Company or its affiliates in Brazil. Beko has been instrumental in the development and execution of the Company's silica sand strategy in Brazil to the benefit of the Company's stakeholders.
About CBPM
Companhia Baiana de Pesquisa Mineral (CBPM) is the mineral research and development company of the State of Bahia, Brazil. Its activities are centered on expanding and improving geological knowledge of the Bahian territory, by identifying and researching its mineral resources and promoting their use by attracting private initiatives to this end. Founded on December 18, 1972, CBPM is recognized as one of the most dynamic companies in mineral research in Brazil. The collection of geological data and information, generated and disseminated by it has contributed to making the State of Bahia one of the best studied and geologically known Brazilian states, highlighting the great diversity of its geological environments and mineral deposits. CBPM's stated mission is to promote the development of the mineral sector in the State of Bahia with technical, economic and social efficiency, in harmony with the preservation of the environment.
About Homerun Resources
Homerun Resources is focused on the development of its business within the critical and energy materials sectors. With a steadfast commitment to operational excellence, sustainability, and building shareholder value, Homerun Resources Inc. is poised to make a lasting impact in these industries.
On behalf of the Board of Directors of
Homerun Resources Inc.
"Brian Leeners"
Brian Leeners, CEO & Director
brianleeners@gmail.com / +1 604-862-4184 (WhatsApp)
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