Homerun Resources Inc. Announces Closing of Initial Tranche of Convertible Security Financing with the Lind Partners Under Engagements with Benchmark/StoneX
Homerun closes dilutive bridge financing to secure runway for its pre-revenue silica development project.
Homerun Resources Inc. has closed the initial C$2,000,000 tranche of a Convertible Security Funding Agreement (CSFA) with Lind Global Fund III, LP. The total facility allows for up to C$13,000,000 in follow-on investments, subject to mutual agreement and approvals. The initial tranche carries a face value of C$2,200,000, comprising C$2,000,000 in principal and C$200,000 in pre-paid interest.
The agreement features a 24-month maturity with a six-month repayment holiday, followed by monthly cash repayments of C$111,111 from months 7 through 24. Interest accrues at C$16,667 per month for the first 12 months, then shifts to 10% per annum on the outstanding principal thereafter. The conversion price is fixed at C$0.66 per share, representing 110% of the market closing price on the day prior to the CSFA announcement. Homerun Resources holds a one-time buy-back right at a 3% premium after the statutory hold period.
Lind received 1,850,000 warrants exercisable at C$0.66 per share. Placement agent Benchmark received C$140,000 in cash fees and 233,333 common shares, representing 7.0% of gross proceeds. StoneX was engaged as a non-exclusive financial advisor to assist with strategic financing and potential uplisting to a senior U.S. exchange. Proceeds are designated for near-term working capital to advance the vertical financing strategy and growth objectives.
Homerun Resources Inc. (HMR) closed its initial tranche of financing following the July 8 announcement and July 14 amendment, providing necessary liquidity at a high effective cost of capital. The deal includes C$200,000 in pre-paid interest, 10% accruing interest, placement fees, and significant warrant coverage consisting of 1.85M warrants at C$0.66, creating substantial dilution for existing shareholders.
The financing does not alter the fundamental project timeline or the economics outlined in the May 2026 Bankable Feasibility Study (BFS). It serves as a bridge to secure the larger C$13M facility and potentially the C$170M European bank LOI for the solar glass project. Given the stock's 60% decline from December 2025 highs and the pre-revenue, capital-intensive nature of the business, this represents a standard, expected bridge financing.
Homerun Resources Inc. (HMR) is developing a vertically integrated clean energy and advanced materials platform in Bahia, Brazil. Its flagship project is the Santa Maria Eterna (SME) silica sand district, where the company controls more than 200 million tonnes of high-purity silica sand.
The development plan outlines three phases of production. Phase 1 involves a 350,000 tonnes per annum (tpa) 3N industrial-grade silica purification plant with a capital expenditure of approximately $9.4 million. Phase 2 will add a +4N advanced purification plant, followed by Phase 3, which targets 5N ultra-high purity silica. Additionally, the company plans a 1,000 tpa antimony-free solar glass manufacturing plant. A bankable feasibility study (BFS) completed in May 2026 projects a net present value (NPV) of US$670 million and an internal rate of return (IRR) of 20.2% for this project.
Through its subsidiary, Homerun Energy, the company focuses on perovskite photovoltaics, AI-driven energy management known as "The Hub," and silica-based thermal energy storage in partnership with the National Renewable Energy Laboratory (NREL).