Homerun enters purchase deal for 582 hectares in Brazil

Executive Summary

• Homerun Resources Inc. has signed a purchase agreement to acquire 582 hectares of land and surface rights for the Fazenda Conjunto Sao Jose e Nova Esperanca in Belmonte, Bahia, Brazil.
• This acquisition completes the company's "District Control Strategy" for the Santa Maria Eterna high-purity silica sand district, securing long-life economic interests and control over the resource base.
• The transaction is valued at $1.1 million (U.S.), paid via cash installments and common shares, and includes the transfer of standard Brazilian mineral lease/royalty rights for third-party exploration.

Key Details

• Asset Acquired: 582 hectares of land and surface rights for Fazenda Conjunto Sao Jose e Nova Esperanca.
• Location: Municipality of Belmonte, Bahia, Brazil, within the Santa Maria Eterna district.
• Strategic Context: Final component of the district control strategy initiated in Q1 2023; secures control over the SME silica sand district for the planned high-purity silica sand industrial complex.
• Contiguity: The acquired land is directly contiguous with Homerun's 99-year, renewable surface rights over Fazenda Sao Jose (secured Dec 2025), which are designated for the silica sand industrial complex (processed silica and solar glass manufacturing).
• Total Consideration: $1.1 million (U.S.).
• Payment Structure:
  • Cash: $500,000 (U.S.) paid in five equal monthly installments, with the first installment due June 25, 2026.
  • Equity: $600,000 (U.S.) paid in Homerun common shares.
• Share Pricing: Priced at market value at the time of the agreement, specifically $1 (Canadian).
• Share Conditions: Subject to TSX Venture Exchange approvals, a four-month statutory hold period, and repurchase/anti-dumping clauses.
• Additional Rights: Transfer of standard Brazilian mineral lease/royalty rights for mineral exploration with third parties from resources within the land/surface rights areas.
• Historical Context: The strategy involved securing mineral leases, supply agreements, surface rights, and direct land ownership over three years to achieve district-scale control.

Notable Quotes

• Brian Leeners, CEO: "Just over three years ago, we were the only party to identify the globally unique value of the SME silica sand district as a critical material supply for the global solar and energy storage sectors... That original plan has manifested today into Homerun obtaining that desired control of the SME silica sand district through direct resource ownership, resource partnership and direct land ownership. Homerun's SME control is a key requirement for the execution of the next phases of the company's strategic plan -- developing and capitalizing Homerun's high-margin silica processing and antimony-free solar glass manufacturing in the SME silica sand district on the industrial site now controlled by Homerun."