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Scandium International Mining Corp. and Lycopodium Sign EPCM Contract for Nyngan Scandium Project
Reno, Nevada--(Newsfile Corp. - May 30, 2017) - Scandium International Mining Corp . ( TSX: ...
About this update from Scandium International Mining Corp.
[{"type":"text","content":"Scandium International Mining Corp. and Lycopodium Sign EPCM Contract for Nyngan Scandium ProjectReno, Nevada--(Newsfile Corp. - May 30, 2017) - Scandium International Mining Corp. (TSX: SCY) (\"Scandium International\" or the \"Company\") is pleased to announce that its subsidiary company, EMC Metals Australia Pty Ltd has signed an Engineering, Procurement and Construction Management (\"EPCM\") contract with Lycopodium Minerals Pty Ltd (\"Lycopodium\"), to build the Nyngan Scandium Project in New South Wales, Australia. The EPCM contract also provides for start-up and commissioning services.HIGHLIGHTS:EPCM contract executed for Nyngan Project, Continuity maintained - Lycopodium authored project feasibility study (2016),Contract also provides for commissioning and start-up services,Contract terms include performance incentives to Lycopodium, Notice to Proceed feature gives SCY an immediate trigger, when ready, to start construction, andEPCM cost estimate is consistent with 2016 project feasibility study.The EPCM contract (\"the Contract\") appoints Lycopodium (Brisbane, QLD, Australia) to manage all aspects of project construction. Lycopodium is the principal engineering firm that delivered the latest NI 43-101 technical report on the Project, titled \"Feasibility Study-Nyngan Scandium Project\", filed on SEDAR on May 4, 2016. Lycopodium's continued involvement in project construction and commissioning ensures valuable technical and management continuity for the project during the construction and start-up of the project.DISCUSSION:The EPCM contract with Lycopodium consists of two phases: Phase I is pre-notice to proceed ('NTP'), and Phase II is full-NTP. Phase I is a cost-reimbursable period that allows SCY full access to Lycopodium's services and the EPCM team for specific tasks and advance work on long-lead items. Phase II will be initiated with a formal NTP, fully at SCY's discretion, with project funding in place, and will activate the Contract and services as agreed in the scope of work.Post-NTP, the Contract is cost-reimbursable for labor and other costs, and specifies fixed price components for labor rates, corporate overhead and profit margins (\"Fee\"), and firm scope (hours) for all EPCM services. A portion (50%) of the Fee is adjustable, based on measured performance on four specified parameters: overall project capi...