Homerun Resources signs LOI with Brazilian outfit

Executive Summary

• Homerun Resources Inc. has signed a non-binding Letter of Intent (LOI) with Jundu Ltda. for the supply, extraction, and primary processing of high-purity silica sand from the Santa Maria Eterna (SME) district in Bahia, Brazil.
• The agreement positions Jundu as a contributing partner to support Homerun’s planned solar glass plant and secondary processing operations, leveraging Jundu’s existing infrastructure and lease assets in the region.
• This LOI is a critical step in Homerun’s business plan, intended to support the development of a Bankable Feasibility Study (BFS) for the solar glass manufacturing facility and facilitate a path to construction and cash flow.

Key Details

• Parties: Homerun Resources Inc. and Jundu Ltda. (Brazil’s most established industrial silica sand producer, jointly owned by Sibelco and Saint-Gobain).
• Asset Location: Santa Maria Eterna (SME) silica sand district in Belmonte, Bahia, Brazil.
• Scope of Agreement:
  • Jundu responsible for extraction and initial processing (washing and sizing) of silica sand.
  • Possibility for Jundu to install an updated processing facility within Homerun’s industrial complex to maximize capital efficiency.
  • Jundu to supply a minimum of 50,000 tonnes per year from its own SME leases, with the balance extracted at Homerun’s discretion from Homerun’s leases.
• Volume Projections:
  • Homerun’s forecast demand for the SME industrial complex is approximately 365,000 tonnes per year.
  • The LOI contemplates a projected volume of around 365,000 tonnes per year across silica sales to third parties, advanced purification by Homerun, and silica for the solar glass plant.
• Strategic Context:
  • The LOI is a key deliverable for Phase 1 (commercial SME district control) and Phase 2 (development of logistics and production to revenues) of Homerun’s business plan.
  • Aligns with Homerun’s 40-year lease agreement with Companhia Baiana de Pesquisa Mineral (CBPM).
  • Intended to define commercial structures, price ranges, and volume ramps to support the BFS for the Santa Maria Eterna solar glass plant.

Notable Quotes

• Brian Leeners, CEO of Homerun: "Advancing from an MOU to a structured commercial LOI with Jundu is a major de-risking event for Homerun. It gives us a clear, scalable path to secure and process the high-purity silica we need, with a partner that already understands this district and this product and has an extensive business in the Brazilian silica market. These commercial terms are designed to feed directly into our bankable feasibility study for the Santa Maria Eterna solar glass plant and, just as importantly, they facilitate a rapid move from the BFS to construction and then to meaningful cash flow. For our shareholders, this LOI is about converting potential into an executable, large-scale industrial plan in partnership with one of the most credible silica players in Brazil."