Since initiating coverage on Homerun Resources Inc. in June, the company‘s share price has more than doubled and last traded at $0.90 with a current market capitalization of $43 million. This impressive performance was backed by major announcements in July (receipt of signed Material Supply Agreement for high-purity silica sand from a district-scale, fully permitted mine in Bahia, Brazil) and August (execution of a confidentiality commitment document with Companhia Baiana de Pesquisa Mineral (CBPM) to complete due diligence and to negotiate the terms to explore and develop additional high-purity silica resources controlled by CBPM in Belmonte, Bahia, near the Port of Ilheus). 

 

Shortly thereafter, Homerun launched a new website and published a corporate presentation disclosing highly interesting details about its silica sand supply from the Bahia Silica Sand District and that management is “working to finalize lease or ownership relationships with the two Brazilian companies“.

 

In this respect, it might be worthwile to compare the Bahia Silica Sand District (also known as the Santa Maria Eterna formation) with other producing silica sand regions and publicly listed development companies in terms of tonnage, grade, and most importantly the reduction of impurities with simple (or complex) processing methods in order to fulfill the strict specifications for the manufacture of solar glass, a strongly growing industry paying high prices and targeted by most silica sand developers. In view of all the challenges that many other silica sand projects are facing (e.g. complex metallurgy, tortuous permitting), the advantages and opportunities for Homerun come to light.