Scandium International Mining Corp. and ALCERECO Sign MOU and Scandium Offtake Agreements
March 30, 2015 (Source: Accesswire) — Scandium International Mining Corp. (the “Company” or “Scandium International”) (TSX: SCY) announces today that it has signed a memorandum of understanding (MOU) with ALCERECO Inc. of Kingston, Ontario, forming a strategic alliance to develop markets and applications for aluminum alloys containing scandium. To further that alliance, and to reinforce the capability of both companies to deliver product developed for Al-Sc alloy markets, Scandium International and ALCERECO have also signed an offtake agreement governing sales terms of scandium oxide product (scandia) produced from the Nyngan Scandium Project in NSW, Australia. The offtake agreement specifies deliveries of scandium oxide product commencing in early 2017.
Scandium as an alloying agent in aluminum allows for aluminum metal products that are much stronger, more easily weldable and exhibit improved performance at higher temperatures than current aluminum based materials. This means lighter structures, lower manufacturing costs and improved performance in areas that aluminum alloys do not currently compete.
MOU AND OFFTAKE AGREEMENT HIGHLIGHTS:
– The MOU covers areas of joint cooperation and development of aluminum alloys that contain and are enhanced by the addition of scandium,
– The MOU recognizes the specialized capabilities ALCERECO holds for the design, manufacture, and testing of Al-Sc alloy materials,
– The offtake agreement outlines standard sale terms on 7,500 kg of scandia per annum, for a term of three years beginning in 2017, which can be extended, and
– The offtake agreement contains both fixed and variable pricing components, which are subject to confidentiality.
George Putnam, CEO of Scandium International Mining Corp. commented:
“This strategic alliance allows SCY to partner with an established alloy technology group to design, develop and demonstrate fit-for-purpose scandium-content aluminum alloys for existing aluminum market applications. The scandia offtake agreement directly supports the efforts of ALCERECO to pursue these individual markets, and demonstrates the keen interest in scandium-content products that exists in the aluminum alloy markets today.”
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Gary Economo, President of ALCERECO commented:
“Our longstanding efforts to develop markets that leverage our in-house expertise in scandium/aluminum have been delayed in the past by the lack of secure sources of scandium. This agreement allows ALCERECO in concert with Scandium International to move forward with joint ventures in several areas now that the supply risks have been reduced.”
ABOUT ALCERECO INC.
ALCERECO is an advanced materials development company that provides services and specialty processing capabilities to companies innovating in a diverse range of markets, including aerospace, automotive, electronics and consumer/sporting goods.
ALCERECO staff work with a range of materials and processes and have the tools and knowledge to take on leading-edge projects such as development of aluminum-scandium alloys, specialty ceramics, composites and graphene enhanced materials. The company has a particular focus on lightweight materials capable of delivering greater strength, functionality and exceptional performance.
The company operates out of the Grafoid Global Technology Centre in Kingston, Ontario that was originally founded by Alcan Aluminum in the 1940’s. ALCERECO is a Canadian private company, and a wholly-owned subsidiary of Ottawa-based Grafoid Inc., a global leader in diverse graphene application development.
For more information about ALCERECO, please visit www.alcereco.com.
ABOUT SCANDIUM INTERNATIONAL MINING CORP.
SCY is focused on developing the Nyngan Scandium Project into the world’s first scandium-only producing mine. The Company owns a 100% interest in both the Nyngan Scandium Project, and the adjacent Honeybugle Scandium Property, in New South Wales, Australia. SCY’s interest in both Nyngan and Honeybugle can potentially be reduced to 80% in the future, based on certain current granted option rights.
The Company filed a NI 43-101 technical report disclosing Measured and Indicated Resources on the Nyngan Project in March of 2010. The Company also filed a NI 43-101 technical report on a preliminary economic assessment of the Nyngan Scandium Project in October of 2014, has completed extensive metallurgical test work on the resource, and filed US patent applications on key process steps. (Note that mineral resources that are not mineral reserves do not have demonstrated economic viability.) In addition, SCY owns a 100% interest in the Tørdal Scandium/REE property in southern Norway, where we continue our exploration efforts, specifically for scandium and REE minerals.
Willem Duyvesteyn, Director and CTO of Scandium International Mining Corp., and a Qualified Person as defined by NI 43-101, has approved the technical content of this press release.
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
This press release contains forward-looking information that involves various risks and uncertainties regarding future events. Such forward-looking information can include without limitation statements regarding the short term or long term economic feasibility of scandium production at our Nyngan scandium project, the effectiveness and scalability of our Scandium processing technologies, and in general, statements based on current expectations involving a number of risks and uncertainties and are not guarantees of future performance. Forward-looking information in this press release is based on estimates and opinions of management and qualified persons as defined in NI 43-101 that are providing technical services to Scandium International, on the dates they are made and are expressly qualified in their entirety by this notice, and by other risk factors disclosed in our public filings. Such statements include metal price assumptions, that funding necessary for carrying out our business plan will be available including the preparation of a feasibility study in 2015, cash flow forecasts, projected capital and operating costs, metal or mineral recoveries, mine life, production rates, the results of HPAL modeling and testing, and our ability to produce any scandium oxide product from our Nyngan property by 2017 as contemplated in the sales agreement referred to in this press release. Any of these and other assumptions and forecasts may change due to reasons that impact the industry generally, such as scandium pricing, or for reasons specific to the project. Except as required by law, Scandium International assumes no obligation to update forward-looking information should circumstances or management’s estimates or opinions change.
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