Homerun signs first silica-sand sales deal in Brazil

Executive Summary

• Homerun Resources Inc. has executed a binding 12-month sales distribution agreement with Cristal Sand Group Ltda. for the sale of high-purity industrial silica sand from its Santa Maria Eterna (SME) district in Brazil.
• The agreement grants Cristal Sand exclusivity within its defined market and secures initial commercial volumes, marking Homerun's first binding commercial sales contract and a transition from project development to revenue-generating operations.
• The partnership includes a commitment from Cristal Sand to invest in marketing and commercial activities to build a premium position in the Brazilian luxury construction market, with deliveries expected to start at a minimum annual threshold and expand based on demand.

Key Details

• Counterparty: Cristal Sand Group Ltda.
• Product: High-purity industrial silica sand extracted from the Santa Maria Eterna (SME) silica sand district in Belmonte, Bahia, Brazil.
• Contract Term: 12-month binding sales distribution contract.
• Exclusivity: Cristal Sand holds exclusivity within its defined market.
• Volume/Delivery: Initial commercial volumes secured with deliveries starting at a minimum annual threshold; volumes to expand over time as the relationship and end-market demand scale.
• Target Market: Brazilian luxury construction market.
• Strategic Context: This is Homerun's first binding commercial sales contract for industrial silica sand from SME, serving as a critical execution milestone transitioning the company to revenue-generating operations.
• Additional Interest: Homerun reports considerable inbound interest and Requests for Proposals (RFPs) from additional potential customers for various industrial applications.
• Marketing Commitment: Cristal Sand committed to investing in marketing and commercial activities related to Homerun's industrial silica sand.

Notable Quotes

• Brian Leeners, CEO of Homerun: "Today's agreement is a watershed moment for Homerun and our shareholders. It is our first binding sales contract for Santa Maria Eterna and effectively checks the box on being 'open for business' with our industrial silica sand platform... We see this initial contract as the tip of the iceberg in terms of the broader demand we are seeing for high-purity industrial silica sand within the Brazilian market."
• Evandro Otto, Commercial Director of Cristal Sand: "For Cristal Sand, this agreement represents much more than growth. It is the consolidation of a position in the luxury segment, raising the level of delivery and expanding its capacity to meet increasingly demanding projects. We are very happy with this partnership."