Homerun Resources Inc. [HMR-TSXV] has executed a letter of intent (LOI) for the option to purchase up to a 100% interest in the 3,019-hectare Tatooine silica project in British Columbia, Canada.
The Tatooine silica project adds to the company’s Americas-based portfolio of advanced-stage projects in the critical elements and energy metals sector. The focus at the Tatooine silica project will be to sample and test the silica for its application in silica products through to high-purity, silicon-based solutions. High-purity silica is the input material for many value-added products in the semi-conductor, solar, battery and other advanced materials industries. The high-purity silica market is experiencing significant disruption caused by tariffs and geopolitical events that are transitioning supply chains to a more regional focus.
Advances in both lithium and solid-state silicon battery applications demonstrate the advantages of using silicon in energy storage and its related industries.
The Tatooine silica project covers an area of approximately 3,019 hectares, located directly adjacent to the community of Brisco, B.C., and B.C. Highway 95, and approximately 65 km southeast of Golden, B.C., which is home to the Moberly mine, a past-producing high-purity silica mine in the same lithological unit as the Tatooine silica project.
The Tatooine silica project is host to high-purity quartzite of the Middle to Upper Ordovician Mount Wilson formation which forms a bed 60 to 90 metres thick, striking northwest and dipping steeply to the northeast. The quartzite is hard, massive, white, medium- to fine-grained and overlain by dolomite.
The historical Brisco silica deposit (B.C. Minfile 082KNE012), located in the western part of Tatooine silica project, 30 metres from Highway 95, was actively mined in 1964 and 1990, producing 2,450 tonnes and 60,000 tonnes, respectively, for a total of 62,450 tonnes of quartzite silica. Randomly selected pieces taken in 1964 from the Brisco Pit assayed 98.66% SiO2 (silicon dioxide), 0.47% Al2O3 (aluminum oxide), 0.06 per cent Fe2O3 (ferric oxide) and 0.08% CaO (calcium oxide).
The Tatooine silica project has excellent access, nearby infrastructure and resources. A 230-kilovolt transmission line is located less than five km from the property along the Columbia River, and a 69 kV transmission line passes along the entire western edge of the property. B.C. Highway 95 also traverses the western edge of the property and there is a rail line and rail yard in the community of Brisco, which is directly adjacent to the
The LOI (dated Aug. 24, 2022) is intended to document the general terms of a purchase option agreement between the company and ClaimHunt Inc. (CHI) concerning the exclusive terms for the purchase of the Tatooine silica project, which is owned by CHI. The proposed terms and conditions of the purchase option, which will be the basis for the terms and conditions to be set forth in the definitive agreement between the parties, are as follows.
To complete the purchase option, Homerun will make a cash payment of $7,500, make work expenditures of $200,000 and issue 1.45 million common shares of Homerun to CHI subject to the terms of the signed definitive agreement.