Homerun Resources Inc. Letter of Intent with Veracel Celulose for the Development of Logistic Setup
And Community Relations for the High Purity Silica Sands Originating from the Belmonte Silica DistrictVancouver, November 12, 2024 - Homerun Resources Inc. (TSXV: HMR) (OTCQB: HMRFF) ("Homerun" or the "Company") is pleased to announce that the Company has executed a non-binding Letter of Intent (LOI), between Homerun and Veracel Celulose S.A. (Veracel).
Veracel has a logistic setup including road and maritime transportation infrastructure, for the transportation of planted eucalyptus wood from farmlands to its processing plant in Eunápolis, and for the transportation of cellulose bales from its processing plant to the port of Aracruz (ES), via the Maritime Terminal of Belmonte (TMB).
It is the mutual intention of Veracel and Homerun to explore opportunities to use and expand the existing logistics setup for the transport of silica sand, creating opportunities for cost dilution and increased productivity.
It is also a mutual understanding that Veracel and Homerun will jointly develop and implement actions in the scope of community relations, ensuring that all local stakeholders will benefit from the operations of both companies in the region.
We expect Veracel's role in the partnership to include:
- Support Homerun on developing relations with Veracel's existing business partners on road transportation, road maintenance, maritime transportation and engineering
- Allow Homerun to operate through its Belmonte Maritime terminal, granting exclusivity in face of Homerun's silica sand business
- Cooperate with Homerun on developing social and institutional actions in the region, contributing to good practices of corporate governance of both companies
We expect HMR's role in the partnership to include:
- Identify and commission logistic partners for the transportation logistics of its silica sands, focusing on utilizing as much as possible the same operators as Veracel and aiming to obtain cost dilutions and productivity gains for both companies
- Contribute proportionately to the road maintenance activities on the routes to be shared with Veracel
- Implement, at its own financial and operational cost, the necessary modifications to the TMB required to allow handling of its silica sand, without disrupting the current Veracel operations
- Actively pursue social and institutional actions, in alignment with Veracel current actions
- Bear solely all the feasibility studies for the project and each and every expense originating from this LOI
The parties also agree that, should the opportunity arise for the construction of a new sea terminal in Belmonte, the Companies will cooperate to pursue it and optimize the logistic flow for both sides.
This LOI is a crucial element of the Company's Phase 2 of the 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 Veracel as a strategic partner is a key milestone for the execution of the Company's logistic plan, as announced in the press release dated September 24, 2024.
"Veracel is recognized worldwide by its technology, efficiency and social responsibility. This partnership will provide Homerun with the ability to scale our operations and dramatically reduce our costs associated with logistics and to continue to evolve as a better Company," stated Armando Farhate, COO of Homerun.
About Homerun Resources (https://homerunresources.com/)
Homerun Resources is focused on the development of its business within the critical and energy materials sectors. With a steadfast commitment to operational excellence, sustainability, and building shareholder value, Homerun Resources Inc. is poised to make a lasting impact in these industries.
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)
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