Mr. Brian Leeners reports
HOMERUN RESOURCES INC. ANNOUNCES SIGNING OF DEFINITIVE SURFACE RIGHTS AGREEMENT FOR THE INSTALLATION OF ITS INDUSTRIAL PROJECTS IN SANTA MARIA ETERNA, BELMONTE, BAHIA, BRAZIL
Homerun Resources Inc. has signed a definitive surface rights agreement over the Centro Industrial Sao Jose da Silica, located in the municipality of Belmonte, Bahia, Brazil, in the district of Santa Maria Eterna (SME), for the installation of Homerun's silica processing plant and solar glass manufacturing facility. The agreement covers a total area of 64 hectares and is directly contiguous to both BA982 and the company's SME Silica resources in the SME Silica sand district.
Key highlights:
- Homerun Resources has signed a 99-year surface rights agreement, automatically renewable for another 99 years, covering 64 hectares at Fazenda Sao Jose, Santa Maria Eterna, Bahia, Brazil, for its industrial projects.
- Homerun can use the surface rights as collateral in project financing, independently secure permits and licences, and is protected against changes in land ownership.
- This agreement replaces the previous municipal land donation process, removing risk of land reclamation and obligations under earlier MoU (memorandum of understanding) terms and facilitating the fast-tracking of the recently announced bankable feasibility study.
- The Municipality of Belmonte provides commitment of funding allocation for paving of approximately five kilometres of road connecting Santa Maria Eterna to BR-101, the main federal highway in the region in support of Homerun's project sites.
The agreement grants actual surface rights (Direito Real de Superficie/surface rights) to Homerun under the terms of articles 1,369 to 1,377 of the Brazilian Civil Code, and ensures irrevocable transfer of those surface rights over the property to Homerun, and once registered on the land's public deed, ensures total legal security in favour of Homerun, regardless of any eventual transition of ownership of the underlying property by the landowners.
The specific purpose for the granting of those surface rights is for the construction of an industrial complex for the manufacture of processed silica and solar glass and correlated products, storage, logistics, research and development, commercial and supporting activities, and any other activity needed for the proper development of Homerun's industrial projects.
This agreement replaces the planned donation of the same land previously authorized by the Municipality of Belmonte. This replacement relieves Homerun of the obligations under the MoU, eliminating any risk of having to return of the land to the municipality, if those Homerun obligations were not met.
In addition to this agreement, Homerun has received a letter of support from the municipality of Belmonte represented by Iedo Jose Menezes Elias, reaffirming its commitment to support the development of Homerun Resources' silica sand project, located in the district of Santa Maria Eterna. As part of this commitment, the municipality will allocate up to $400,000 (U.S.) toward infrastructure improvements related to the project including the completion of the executive project for the paving of approximately five kilometres of road connecting Santa Maria Eterna to BR-101, the main federal highway in the region. This initiative is part of a broader program led by the Bahia State Secretariat of Infrastructure (SEINFRA).
Brian Leeners, chief executive officer of Homerun, stated: "We wish to thank the parties to the original MoU and the landowner for helping to get this key deliverable completed in a timely manner before the pending receipt of our bankable feasibility study and financing of the industrial plants. We continue to work with the parties to the original MoU to facilitate the further items under the MoU, including the utilities and the municipality of Belmonte's financial support toward the development of infrastructure. The signing of this new agreement aligns with the execution of the company's strategy to develop and construct Homerun's silica processing and solar glass manufacturing facilities, in the municipality of Belmonte, ensuring the establishment of the entire silica value chain, from resource to extraction to processing to high value-added final product at the Santa Maria Eterna site, maximizing both the socioeconomic and environmental benefits for the people of the state of Bahia."
The preliminary area of Homerun's surface rights will be reviewed and can be modified if needed in an amended common agreement between the parties. Homerun has full access to the area immediately.
The agreement is valid for 99 years from the date of the registration in the land's deed. This term will be automatically renewed for an additional 99 years, unless either of the parties manifest otherwise five years before the original expiration date.
The compensation payments will begin in 2027, with one fixed payment of 60,000 Brazilian reals due on June 30, 2027. Starting in January of 2028, there will be monthly payments of 50,000 Brazilian reals subject to the caveat that if no plant construction has started by January, 2028, for reasons beyond Homerun's control, the payment will be reduced by 50 per cent until construction starts. The amounts will be updated annually using the IPCA index (inflation adjustment).
Among the surface rights secured through this agreement, Homerun is entitled to offer the surface rights as collateral in financing and Homerun can obtain licences and permits without any input or interference by or from the landowners. Homerun also becomes responsible for all costs, including taxes, affecting the land. In the situation where the landowners decide to sell, lease, exchange, donate or perform any transaction with the property, Homerun has the right of first refusal.
About Homerun Resources Inc.
Homerun is building the silica-powered backbone of the energy transition across four focused verticals: silica, solar, energy storage and energy solutions. Anchored by a unique high-purity low-iron silica resource in Bahia, Brazil, Homerun transforms raw silica into essential products and technologies that accelerate clean power adoption and deliver durable shareholder value.
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