Homerun Resources Inc. Signs Letter of Intent to Purchase the Ze Manoel Cu-Au Project in the State of Goias, Brazil

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Vancouver, British Columbia–(Newsfile Corp. – February 8, 2022) – Homerun Resources Inc. (TSXV: HMR.H) (“home run“or the”Society“) is pleased to announce that the Company has signed a Letter of Intent (LOI) for the option to purchase up to 100% interest in the Zé Manoel project in the state of Goiás, Brazil ( the project”).

The project covers an area of ​​approximately 7,587 acres in the western part of the state of Goiás in the municipality of Arenópolis in Brazil, approximately 290 km from the state capital, Goiânia and approximately 60 km east of east of the town of Iporá. Access to the property is via well-maintained trunk roads that traverse most of the southern segment of the mining concession. Access to the whole property is facilitated by unpaved secondary roads and paths.

The Zé Manoel project is located in the structural province of Tocantins in the folded belt of Brasília, inserted in the magmatic arc of Arenópolis, located in the large magmatic arc of Goiás, of Neoproterozoic age. The property has significant metallogenic potential, justified by the occurrences of: gold deposits related to Bacilândia intrusions and epithermals; copper and gold deposits in Bom Jardim de Goiás; Deposits of Ni, Cu, Co, PGE and vermiculite deposits, related to layered mafic-ultramafic bodies; occurrences of Sn in anorogenic granites; occurrences of Cretaceous diamondiferous kimberlite intrusions, carbonatites and kamafugites of the Goiás Alkaline Province (GAP), in addition to various industrial materials used for civil and agricultural inputs.

A recent research survey on the property comprises the majority of available data on the project and includes ground geophysics, stream sediment sampling, trenching and sampling of lithogeochemical outcrops.

Target areas

The project consists of four main target areas: Ze Manoel, PAV, Dipolo and Alkaline. A recent in-depth research report on the Property determined that it is located in a favorable geological setting for the formation of polymetallic mineral deposits. The geochemical results obtained corroborate the economic potential of copper, gold, iron and diamonds, with Cu contents greater than 1%, Au greater than 1 g/t and Fe2O3 greater than 80%.

The main target, Ze Manoel, gave anomalous values ​​of Cu (1,325 to 11,410 ppm), Au (5 to 400 ppb), Fe2O3 (11.7 to 83.2%) and up to 3.85 ppm of Ag in magnetic rock samples. The anomalous concentrations of these elements originated from two main locations, one in the central part of the target, in contact with mylonite and diorite, where a breccia was found, and one in the northeast region of the target, with high levels of Co and Fe2O3. contents. The trenches have identified anomalous copper values.

Sediment sampling at the Dipolo target, named for the presence of four north-south trending dipoles identified by airborne geophysics, returned three positive results for Au out of approximately 17 samples, with one sample grading 1.678 g/t gold . The sample is located to the east and downstream of the dipoles. The short term plan at Dipolo is a comprehensive mapping program.

The alkaline target is defined by the presence of an alkaline intrusion mapped by the Brazilian Geological Service. Twelve current sediment samples were collected with three positive results for Au, up to 0.28 g/t Au, which is located downstream of the alkaline rock body.

transaction details

The letter of intent (dated February 7, 2021) aims to document the terms and conditions of a call option agreement between the Company and Beko Invest Ltd. (“BEKO”) regarding the exclusive conditions of purchase of the Zé Manoel project which belongs to BEKO through its 100% ownership of 3S Ltd. The proposed terms and conditions of the purchase option, which are entirely subject to the terms and conditions to be set forth in the definitive agreement, are as follows:

  • In order to initiate the exercise of the purchase option, HMR will advance cash payments of US$250,000 to cover historical expenditures made by the vendor on the ZM project.
  • HMR will have the option to make common share payments totaling 12,000,000 common shares to the seller for 100% direct ownership in the ZM project as follows:
  • HMR will acquire an initial 25% interest in the ZM project upon the issuance of 3,000,000 common shares of HMR to the seller issued upon receipt of call option approval by the TSX Venture Exchange .
  • HMR will acquire an additional 25% (cumulative 50%) interest in the ZM project upon the issuance of an additional 3,000,000 shares of HMR common stock to the seller at any time prior to the first anniversary of the approval of the call option by the TSX Venture Exchange.
  • HMR will acquire an additional 25% (cumulative 75%) interest in the ZM project upon the issuance of an additional 3,000,000 shares of HMR common stock to the seller at any time prior to the second anniversary of the approval of the call option by the TSX Venture Exchange.
  • HMR will acquire a final 25% (cumulative 100%) interest in the ZM Project upon the issuance of an additional 3,000,000 common shares of HMR to the Seller (the “3rd Anniversary Shares”), at any time prior to the third anniversary of the Toronto Stock Exchange Approval by the Risk Exchange of the call option.

Qualified person

The technical content of this release has been approved by Case Lewis, P.Geo., a Qualified Person as defined by National Instrument 43-101.

The references

On behalf of the Board of Directors of
Homerun Resources Inc.

Brian Leners

Brian Leeners, CEO and Director

Contact:
[email protected]

The TSX Venture Exchange has in no way passed on the merits of the proposed transaction and has neither approved nor disapproved of the contents of this press release.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/113181


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