Homerun Resources Inc. Advances Solar Glass Project Financing with Letter of Intent from Leading European Project Finance Bank for up to 170 Million Euros
A European bank issued a letter of intent for €170m in project finance advances to fund solar glass production.
Homerun Resources Inc. (HMR) has received a signed Letter of Intent (LOI) from a leading European project finance bank for an export credit facility of up to €170 million, with a tenor of up to 14 years. The facility would fund the equipment package within the planned solar glass plant in Bahia, Brazil, which has a total capex estimate of nearly US$400 million (from the May 2026 Bankable Feasibility Study). Final commitment is subject to due diligence and credit committee approvals, and the bank’s identity remains undisclosed.
Homerun Resources Inc. (HMR) announced a letter of intent (LOI) representing a significant advancement in securing funding for its project. The non-binding agreement serves as a validation signal from a major European institution, aligning with the company’s May 2026 guidance that “finance parties are actively engaged.” While prior updates indicated ongoing discussions with consortium lenders and Brazilian development banks such as BNDES and FINEP, no specific bank commitment had been disclosed previously. The news shifts the financing narrative from a process underway to a concrete, name-deferred pending status.
The €170 million size of the LOI covers roughly half of the total capital expenditure, potentially reducing the equity or dilutive financing burden if finalized. However, the agreement remains conditional on due diligence and final approvals. No binding term sheet or credit agreement has been signed, and the counterparty remains confidential. Given the company’s thin cash position, with Q1 2026 cash of CAD 712k, and its pre-revenue status, this LOI is a material positive step, though execution risk persists.
Homerun Resources Inc. (TSX-V: HMR) is a Canadian-listed developer of a vertically integrated silica platform in Brazil. Its flagship project is a 1,000-tonne-per-day (365,000-tpa) solar glass manufacturing plant in Santa Maria Eterna, Bahia, utilizing the company’s high-purity, low-iron silica sand deposits.
The May 2026 Bankable Feasibility Study reported an NPV of ~US$670 million and an IRR of 20.2%, with a total capex of ~US$396.5 million. The company also holds a 350,000-tpa 3N silica purification plant (Phase 1) and has ambitions for 4N/5N advanced materials. It has strategic partnerships with SORG (technology), Jundu (feedstock supply), and offtake agreements with Sengi and Balfar.