News release
N NEWS RELE EASE TSX: : SCY March 30, , 2015 NR R 15-3 www.scan ndiummining g.com
SCY and ALC CERECO S Sign MOU U and Sca andium O Offtake A Agreemen nts
Reno, Nevada – Ma arch 30, 2015 – Scand dium Interna ational Min ning Corp. ( (the “Comp pany” or “Scan ndium Inter rnational”) (
(TSX: SCY) announces today that it has signed d a memoran ndum nc. of Kingston, Ontario o, forming a strategic alliance of unders standing (MO OU) with AL LCERECO In ys containing scandium. To further that to develo op markets a and applicat tions for alu uminum alloy alliance, and to reinfo orce the cap pability of bo oth companie es to deliver r product dev veloped for A Al-Sc alloy markets, Scand dium Interna ational and A ALCERECO O have also s signed an offtake agree ement governing sales ter rms of scandium oxide product (scandia) p produced from the Ny yngan Scandium tralia. The offtake agre m Project in NSW, Aust eement spec cifies deliveries of scan ndium oxide pro oduct comme encing in ea arly 2017.
Scandium m as an alloy ying agent in n aluminum allows for aluminum me etal products s that are mu uch stronger, , more easily y weldable a and exhibit im mproved per rformance at t higher temperatures th han current a aluminum ba ased materia als. This mea ans lighter st tructures, low wer manufacturing costs s and impr roved perform mance in are eas that alum minum alloy ys do not cur rrently comp pete.
MOU AN ND OFFTAK KE AGREEM MENT HIGHL LIGHTS:
- The MOU co
T overs areas s of joint co ooperation a and develo opment of a aluminum a alloys th hat contain and are enhanced by t the addition n of scandium,
- The MOU rec
he specialized capabilities ALCER T cognizes th RECO holds s for the design, ng of Al-Sc alloy mater manufacture m e, and testin rials,
- The offtake
T agreement outlines s standard sa ale terms o on 7,500 kg g of scandia a per annum, for a a term of thr ree years beginning in n 2017, whic ch can be ex xtended, an nd
- The offtake
T agreement contains both fixed ng components, d and varia able pricin which are su w ubject to co onfidentiality y.
George Putnam, CE EO of Scand dium International Min ning Corp. c commented:
n established alloy tech “This strategic allian nce allows S SCY to part tner with an hnology grou up to design, d develop and demonstrat te fit-for-purp pose scandi ium-content aluminum a alloys for existing orts the efforts of aluminum m market ap pplications. The scandia offtake ag greement directly suppo rsue these individual m trates the keen intere ALCERE ECO to pur markets, an nd demonst est in s today.”
scandium m-content products that exists in the e aluminum a alloy markets
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.
QUALIFIED PERSON
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.
For additional information please contact:
Scandium International Mining Corp.
Investor Relations; Ed Dickinson (CFO) (775)-233-7328 or George Putnam (CEO) (925) 208- 1775 or [email protected].
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.