Homerun closes rights acquisition over Guidoni

Executive Summary

• Homerun Resources Inc. completed the assignment of CBPM lease rights for the Guidoni Belmonte silica district, securing full extraction permissions on tenements 871.960/1992, 870.462/1999, 870.463/1999 and 873.387/2007.
• The transaction includes a royalty of R$26 (≈ US$4.50) per tonne of extracted silica sand payable to CBPM and total required payments of R$2.5 million, with R$500 k already paid and the remaining R$2 million being paid in four semi‑annual instalments.
• The acquisition gives Homerun control over a majority of high‑purity silica resources in the Belmonte district, supporting its vertically integrated strategy from extraction to solar glass production.

Key Details

• Lease Assignment: Completed assignment of exploitation rights from Guidoni Brasil SA under a lease with Companhia Bahiana de Pesquisa Mineral (CBPM).
• Tenements Covered: 871.960/1992, 870.462/1999, 870.463/1999, 873.387/2007 – all fully permitted for immediate extraction/mining.
• Royalty Rate: R$26 per tonne of extracted silica sand (≈ US$4.50).
• Total Payment Obligation: R$2.5 million.
• Initial Payment: R$500,000 paid at execution of definitive agreement (already satisfied).
• Remaining Balance: R$2 million payable in four instalments, each due six months apart, adjusted for FX variations against a reference rate of US$1 = R$4.9827. First instalment paid on Aug 12 2025.
• Strategic Impact: Provides Homerun with control over a “significant majority” of silica sand in the Belmonte district, enhancing supply security for its downstream solar‑glass and battery‑material businesses.
• CEO Statement (Brian Leeners): Emphasized the strategic importance of consolidating control over the district’s silica resources to support vertical integration and create a defensible competitive moat in renewable‑energy markets.

Notable Quotes

“This resource base, combined with our vertically integrated approach from extraction through solar glass production, positions us uniquely as both the primary demand driver and supply controller for this unique material.” – Brian Leeners, CEO, Homerun Resources Inc.