Business
Scandium International Consolidates 100% Ownership of Nyngan Scandium Project; Scandium Investments LLC to Become Largest Shareholder
Reno, Nevada--(Newsfile Corp. - June 15, 2017) - Scandium International Mining Corp . (TSX:S...
About this update from Scandium International Mining Corp.
[{"type":"text","content":"Scandium International Consolidates 100% Ownership of Nyngan Scandium Project; Scandium Investments LLC to Become Largest ShareholderReno, Nevada--(Newsfile Corp. - June 15, 2017) - Scandium International Mining Corp. (TSX:SCY) (\"Scandium International\" or the \"Company\") is pleased to announce that it has signed a Memorandum of Understanding and reached agreement with Scandium Investments LLC (\"SIL\"), to acquire SIL's 20% ownership of EMC Metals Australia Pty Ltd, (\"EMC-A\"). The transaction will increase the Company's ownership of EMC-A from 80% to 100%. EMC-A holds both the Nyngan and Honeybugle scandium projects located in New South Wales, Australia. The Company will issue 57,371,565 shares of the Company to acquire SIL's shares of EMC-A, representing 20% of the issued shares of the Company on a post-transaction basis. The transaction is considered non-dilutive to existing SCY shareholders.In connection with the acquisition, the Company has granted SIL the right to nominate two directors to the board of directors of the Company.HIGHLIGHTS:Transaction consolidates SCY ownership in Nyngan/Honeybugle Projects to 100%, Will accelerate development of Nyngan Scandium Project through better alignment,Transaction considered non-dilutive to existing SCY shareholders, SIL becomes largest Company shareholder, andSIL to nominate two directors to the Company's board of directors.The share exchange transaction was contemplated and outlined in the Loan and Option Agreement, entered into between SCY and SIL in June 2014. Under the terms of that agreement, SIL retained the right to sell its 20% interest in EMC-A to the Company in exchange for shares of the Company, once the Nyngan Mining Lease was received. The establishment of 100% scandium project ownership by SCY's common shareholders holds significant advantage for the development of the Nyngan Scandium Project. SIL and SCY agreed that consolidating 100% ownership of Nyngan and Honeybugle within SCY would potentially allow for a wider array of project financing structures, to better optimize the cost of capital for the Nyngan Scandium Project. The principals of SIL hold a broad range of international capital markets skills and experience including Peter Evensen, the retired CEO of Teekay Corporation; Chris Evensen, the retired co-founder of Canyon Capital Advisors, a multi-billion ...