Homerun signs LOI for solar glass plant in Brazil

Executive Summary

• Homerun Resources Inc. has signed a Letter of Intent (LOI) with SORG Group (Germany) to construct a 1,000-tonne-per-day antimony-free solar glass manufacturing plant in Santa Maria Eterna, Bahia, Brazil.
• The facility is projected to be Latin America's first dedicated solar glass manufacturing plant, utilizing state-of-the-art Western technology and equipment.
• A binding formal contract is contingent upon the completion of a bankable feasibility study (BFS) and the securing of project financing, including German export credit support and Brazilian government financing.

Key Details

• Parties Involved: Homerun Resources Inc. and Nikolaus Sorg GmbH & Co. KG (SORG Group).
• Project Scope: Construction of a 1,000-tonne-per-day solar glass manufacturing plant.
• Location: Santa Maria Eterna, municipality of Belmonte, Bahia, Brazil.
• Technology & Equipment: SORG is appointed as the technology provider and supplier of glass manufacturing and processing equipment. Key features include:
  • Antimony-free solar glass production for next-generation photovoltaic applications.
  • Electric boosting system for improved energy efficiency and carbon footprint reduction.
  • State-of-the-art Western technologies and equipment.
• Financing Structure:
  • German Support: Cooperation to obtain German bank export credit project financing for the SORG technology/equipment package, supported by Euler Hermes export credit guarantees.
  • Brazilian Support: Parallel capitalization for localized responsibilities (civil works, utilities, etc.) supported by Banco Nacional de Desenvolvimento Economico e Social (BNDES) and Finep commitments.
• Feasibility Study: Homerun has contracted German engineering company DTEC, in cooperation with SORG, to conduct the Bankable Feasibility Study (BFS).
• Next Steps: A binding formal contract will be signed following the successful completion of the BFS and project financing.
• Homerun's Responsibilities: Capitalization and completion of localized content, including permit planning, civil works, utilities, electric power supplies, and installation work as specified by SORG.

Notable Quotes

• Brian Leeners, Chief Executive Officer: "Another month, another big milestone for Homerun. The content of this News release is the culmination of an extensive effort across both Homerun and SORG teams. Based on how well these groups have worked together we have no doubt that the Homerun solar glass plant will be built to the highest standards with the latest technologies. I am personally excited to see the turn of that first shovel to start building Latin America's first and only solar glass plant."