Homerun Resources Inc. Memorandum of Understanding with Local Partner for the Processing of High Purity Silica Sands Originating from the Belmonte Silica District
Rhea-AI Summary
Homerun Resources Inc. (TSXV: HMR) (OTCQB: HMRFF) has signed a non-binding Memorandum of Understanding (MOU) with a local partner in the Belmonte Silica District. The agreement outlines two operational modalities: 1) Partner providing extraction and processing services for Homerun's silica sand for a per-tonne fee, and 2) Product sales arrangement where the partner processes sand from either party and sells it to Homerun or directly to end customers with compensation to Homerun. The partner owns a silica sand processing facility with dry processing capabilities and can quickly invest in upgrades. This MOU is part of Phase 2 of Homerun's Business Plan Roadmap and aligns with their 40-year lease agreement with CBPM.
Positive
- Access to existing processing facility without CAPEX investment
- Flexible operational arrangements through two business modalities
- Partner has capacity to invest in facility upgrades
- Alignment with company's 40-year lease agreement and business roadmap
Negative
- MOU is non-binding, creating execution uncertainty
- Partner's identity and ownership remain undisclosed
News Market Reaction
On the day this news was published, HMRFF gained 18.62%, reflecting a significant positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Vancouver, British Columbia--(Newsfile Corp. - November 4, 2024) - Homerun Resources Inc. (TSXV: HMR) (OTCQB: HMRFF) ("Homerun" or the "Company") is pleased to announce that the Company has today received an executed non-binding Memorandum of Understanding (MOU), between Homerun and an experienced and reputable local partner in the Belmonte Silica District (the "Partner").
- Both Homerun and the Partner have assets under ownership or control in the Belmonte Silica District.
- The Partner has a silica sand processing facility with dry processing capabilities.
- The Partner has the capacity to invest capital quickly in upgrading its processing capabilities.
The Partner and Homerun are willing to cooperate within two modalities:
A) Services for the extraction and processing of Homerun silica sand (
- Extraction of Homerun silica sand.
- Processing / Sizing.
- Delivery in dry bulk or for small volumes in 1 tonne bags.
The Partner will charge a service fee to Homerun per tonne of silica sand.
B) Product Sales where the Partner executes processing:
- Extraction of the Partner's and/or Homerun's silica sand.
- Processing / Sizing.
- Delivery in dry bulk or for small volumes in 1 tonne bags.
The Partner will sell the processed sand to Homerun, at a negotiated cumulative price, or sell the processed sand directly to end customers of Homerun and compensate Homerun.
This MOU is a key element of Phase 2 of the Company's Business Plan Roadmap, and in line with the commitment under its partnership with Companhia Baiana de Pesquisa Mineral (CBPM), within the scope of the 40-year lease agreement between the parties. Securing the Partner's services is a fundamental cornerstone for the execution of the Company's logistics plan to cashflow, as announced in the press release dated September 24, 2024.
"It is with great satisfaction that Homerun celebrates this new partnership, with one of the most renowned organizations in the silica sand sector in Brazil. Working hand in hand will benefit the parties through a win-win relationship and pave the road for Homerun to achieve its own strategic goals which include minimizing the CAPEX traditionally required to build processing that will now be available today and the CAPEX to build processing that will be required in the future," stated Armando Farhate, COO of Homerun.
The Partner has requested that it's identity and ownership not be disclosed at this time.
About Homerun Resources (https://homerunresources.com/)
Homerun is focused on the development of industrial materials and technologies that will contribute to meeting the world's clean energy and climate goals. The Company is listed on the TSX Venture Exchange under the symbol HMR.
On behalf of the Board of Directors of
Homerun Resources Inc.
"Brian Leeners"
Brian Leeners, CEO & Director
brianleeners@gmail.com / +1 604-862-4184 (WhatsApp)
FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE
The information contained herein contains "forward-looking statements" within the meaning of applicable securities legislation. Forward-looking statements relate to information that is based on assumptions of management, forecasts of future results, and estimates of amounts not yet determinable. Any statements that express predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance are not statements of historical fact and may be "forward-looking statements".
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/228757
FAQ
What are the two operational modalities in Homerun Resources (HMRFF) new MOU for silica sand processing?
How does the November 2024 MOU benefit Homerun Resources (HMRFF) financially?
What is the relationship between Homerun Resources (HMRFF) and CBPM in the Belmonte Silica District?
