Business
Scandium International - Sales and Marketing Update
Reno, Nevada--(Newsfile Corp. - December 14, 2017) - Scandium International Mining Corp . ( ...
About this update from Scandium International Mining Corp.
[{"type":"text","content":"Scandium International - Sales and Marketing UpdateReno, Nevada--(Newsfile Corp. - December 14, 2017) - Scandium International Mining Corp. (TSX: SCY) (\"Scandium International\" or the \"Company\") is pleased to announce that it has both revised and renewed an existing scandium product offtake sales agreement entered into in 2015 with Alcereco Inc., a private Canadian aluminum alloy specialty research and manufacturing company, located in Kingston, Ontario, Canada. The revised sales agreement extends the deadline for initial production and shipments from the Nyngan Scandium Project from December 1, 2017, to as late as December 1, 2020. The defined sale product has also been changed to an aluminum scandium 2% master alloy, from scandium oxide (Sc2O3) in the prior agreement. This sales agreement covers 55% of Nyngan's initial twelve month forecast production, and approximately 20% of nameplate capacity, as established by the definitive feasibility study.The Company has been working extensively with Alcereco on test production batches of aluminum alloys containing scandium, for third party customers. These test pours have been conducted on various alloy types and scandium loads, and now form the basis of aluminum samples to advance customer marketing and sales initiatives in various target markets.SALES AGREEMENT HIGHLIGHTS:New sales agreement extends delivery start date to as late as December 2020, Agreement addresses delivery of 225 tonnes/year of master alloy, for three years, Contract sets agreed prices of master alloy from delivery start date, on 150 tonnes of master alloy (2%) product per year, Contract provides a tight pricing framework for additional master alloy (2%) volumes of 75 tonnes per year, andThe sales agreement includes force majeure clauses and no take-or-pay provision, consistent with terms of the earlier sales contract concluded in 2015.ALLOY MIX PROGRAM HIGHLIGHTS:Multiple alloy mix programs containing scandium undertaken in 2017,Programs range across 3, 5 & 7 Series aluminum alloys, Program results point to preferred recipes and optimized process techniques on larger batch sample manufacture in Q1 2018, and Alloy samples are key to promoting customer interest in scandium-containing aluminum alloys.DISCUSSION:In March of 2015, SCY executed an MOU with Alcereco Inc., outlining a research and development fr...