Homerun, Magnum form REE separation tech partnership

Executive Summary

• Homerun Resources Inc. has executed a binding Memorandum of Understanding (MoU) with Magnum Mining & Exploration Ltd. to jointly evaluate the use of Homerun's ultrapure silica sand for the adsorption and chromatographic separation of rare-earth elements (REE).
• The partnership aims to test if Homerun's high-purity silica can streamline REE separation from Magnum's Brazilian ore, potentially offering a reduced solvent footprint and lower-carbon processing solutions.
• The agreement outlines a phased approach: bench-scale evaluation, potential pilot testing, and eventual commercialization, with jointly controlled IP and shared costs for testing phases.

Key Details

• Parties Involved: Homerun Resources Inc. (Supplier of ultrapure silica sand) and Magnum Mining & Exploration Ltd. (Supplier of REE samples from Brazilian assets).
• Agreement Type: Binding Memorandum of Understanding (MoU).
• Objective: Jointly evaluate the application of Homerun's HMR ultrapure silica sand for adsorption and chromatographic separation of REE samples supplied by Magnum.
• Technical Context: The collaboration leverages recent peer-reviewed studies showing bench-scale continuous extraction chromatography on silica-based media can achieve ≥99.9% purity for individual Heavy Rare Earth Elements (HREEs) using mineral-acid eluents, potentially offering advantages over conventional bulk solvent extraction (SX).
• Phased Approach:
  1. Bench-scale application of HMR ultrapure silica sand for adsorption and chromatographic separation of REEs from Magnum's Brazilian projects.
  2. Subject to bench-scale success, a pilot test of the jointly developed solution.
  3. Eventual commercialization of the jointly developed solution.
• Intellectual Property (IP): All IP created during testing phases will be jointly controlled. If either party determines the technology is unsuitable for their materials, they may exit the MoU, allowing the other party to utilize the obtained IP for their benefit.
• Financial Terms: The parties will develop budgets to jointly cover costs incurred related to the testing phases.
• Term and Termination:
  • The MoU term expires in 12 months (subject to renewal).
  • May be terminated on 30 days' notice, or due to an event of default or force majeure.

Notable Quotes

• Michael Davy, Chairman of Magnum Mining & Exploration Ltd.: "We are very pleased to be initiating this research collaboration partnership with Homerun. We believe this MoU adds smart optionality to our strategy to drive value across our REE portfolio. At minimal cost, we can test whether Homerun's high-purity silica has the potential to streamline REE separation from our Brazilian ore with a reduced solvent footprint."
• Brian Leeners, CEO of Homerun Resources Inc.: "This collaboration is an exciting opportunity for Homerun to advance the application of our ultrapure silica product in a new generation of rare-earth element separation technologies. By leveraging our high-purity feedstock with Magnum's promising Brazilian rare-earth assets, we believe we can deliver environmentally improved, lower-carbon-footprint processing solutions that are critical to the energy transition."