SCY Enters into MOU with Weston Aluminum FOR Master Alloy Manufacture
NEWS RELEASE
TSX: SCY
March 2, 2017
NR 17-1
www.scandiummining.com
SCY ENTERS INTO MOU WITH
WESTON ALUMINUM FOR MASTER ALLOY MANUFACTURE
Reno, Nevada, March 2, 2017 – Scandium International Mining Corp. (TSX:SCY) (“Scandium
International” or the “Company” ) is pleased to announce it has signed a Memorandum of
Understanding (“MOU”) with Weston Aluminium Pty Ltd (“Weston”) of Chatswood , NSW,
Australia. The MOU defines a cooperative commercial alliance (“Alliance”) to jointly develop the
capability t o manufacture aluminum -scandium master alloy (“Master A lloy”). The inten ded
outcome of this Alliance will be to develop the capability to offer Nyngan Project aluminum alloy
customers scandium in form of Al-Sc Master Alloy, should customers prefer that product form.
HIGHLIGHTS:
MOU outlines terms of a commercial alliance with Weston Aluminum,
Represents key steps towards Master Alloy manufacturing agreement,
Allows SCY to quickly apply know-how alongside operating aluminum processor,
Supports a product offer more suitable to many downstream customers, thereby
expanding the potential customer base, and
Allows SCY to bring added value to significant potential scandium markets.
The MOU outlines ste ps to jointly establish the manufacturing parameters, metallurgical
processes, and capital requirements to conv ert Nyngan Project scandium product into Master
Alloy, on Weston’s existing production site in NSW. The MOU does not include a binding
contract with commercial terms at this stage, although the intent is to pursue the necessary
technical elements to arrive at a commercial contract for conversion of scandium oxide to
Master Alloy, and to do so prior to first mine production from the Nyngan Project.
Discussion:
SCY has been developing an internal understanding and capability to convert scandium oxide to
Master Alloy for some time. In 2014, the Company announced it applied for a US Patent on
Master Alloy production, which is still in the applicatio n phase . That Patent Application
addressed scandium Master Alloys with both aluminum -base and magnesium -base metals.
The Company has investigated scandium Master Alloy manufacturing processes previously with
the CSIRO, in Australia, and Kingston Process M etallurgy (KPM) in Ontario, Canada. Further,
the technical team in SCY has previous relevant experience in this metallurgical area.
Weston Aluminium is a privately -owned, established secondary aluminum and i ndustrial
services company with its production facilities located near Kurri Kurri in, NSW, approximately
50km from Newcastle and 400km from the Nyngan Project. Using an environmentally attractive
'non-salt' processing technology from Asahi Seiren in Japan as its core technology, Weston has
further developed its application to process all forms of alumin um bearing dross and by-
products from the alumin um industry, and manufacturing Aluminum Deoxidant for steel making
for BlueScope Steel at Port Kembla NSW and Arrium at Whyalla SA. Weston recycles industrial
aluminum scrap, and dross, principally from the Tomago Aluminum Smelter located north of
Newcastle, which is an independent joint venture between Rio Ti nto Alcan, CSR and Hydro
Aluminum. Weston today recycles 20,000 tonnes of alumin um materials annually, and has
established capability in recovering valuable metals from metallurgical process dross materials ,
resulting in zero land fill.
The process for making scandium Master Alloy is generally known, although efficiencies vary
widely in practice. While numerous entities make and sell a variety of aluminum master alloys
globally, very few have established the capability or the acce ss to scandium , to make Al -Sc
Master Alloy product well.
The Company believes that it can establish world-class techniques for manufacture of scandium
Master Alloy, and can offer an upgraded product to aluminum alloy customers directly. This
approach enables the Company to better control product quality , by consolidating the upgrade
step through a trusted downstream processor. The Company will also continue to offer product
in scandium oxide form, for customers who prefer or require that product form.
SCY intends to contribute the majority of the intellectual property (“IP”) required to define
manufacturing technique and metallurgy, and will retain the IP rights to that process, recipe and
know-how, as defined in the MOU.
George Putnam, CEO of Scandium International Mining Corp. commented:
“We are excited to team with an experienced alumin um products manufacturer to build a
capability in scandium Master Alloy manufacturing. This Alliance allows SCY to apply and
expand our know -how in this area immediately , while working with Weston, an innovative local
operator. We believe this capability to offer sc andium product as Master Alloy has the potential
to broaden our customer base and deliver scandium’s promise more effectively to aluminum
alloy users.”
QUALIFIED PERSONS AND NI 43-101 TECHNICAL REPORT
Willem Duyvesteyn, MSc, AIME, CIM, a Director and CTO of the Company, is a qualified person
for the purposes of NI 43 -101 and has reviewed and approved the technical content of this
press release on behalf of the Company.
ABOUT SCANDIUM INTERNATIONAL MINING CORP.
The Company is focused on developing the Nyngan Scandium Project into the world’s first
scandium-only produci ng mine. The Company owns an 80 % interest in both the Nyngan
Scandium Project, and the adjacent Honeybugle Scandium Property, in New South Wales,
Australia, and is manager of both projec ts. Our joint venture partner, Scandium Investments
LLC, owns the remaining 20% in both projects, along with an option to convert those direct
project interests into SCY common shares, based on market values, prior to construction.
The Company filed a NI 43 -101 technical report in May 2016, titled “Feasibility Study –
Nyngan Scandium Project” . That feasibility study delivered an expanded scandium resource,
a first reserve figure, and an estimated 33.1% IRR on the project, supported by extensive
metallurgical test work and an independent, 10 -year global marketing outlook for scandium
demand.
For further information, please contact:
George Putnam, President and CEO.
Tel: 925-208-1775
Email: [email protected]
This press release contains forward -looking statements about the Company and its business.
Forward looking statements are statements that are not historical facts and include, but are not
limited to : reserve and resource estimates, estimated NPV of the project, anticipated IRR,
anticipated mining and processing methods for the Project, the estimated economics of the
project, anticipated Scandium recoveries, production rates, scandium grades, estimate d capital
costs, operating cash costs and total production costs, planned additional processing work and
environmental permitting. The forward -looking statements in this press release are subject to
various risks, uncertainties and other factors that could cause the Company's actual results or
achievements to differ materially from those expressed in or implied by forward looking
statements. These risks, uncertainties and other factors include, without limitation risks related
to uncertainty in the demand f or Scandium and pricing assumptions; uncertainties related to
raising sufficient financing to fund the project in a timely manner and on acceptable terms;
changes in planned work resulting from logistical, technical or other factors; the possibility that
results of work will not fulfill expectations and realize the perceived potential of the Company's
properties; uncertainties involved in the estimation of Scandium reserves and resources; the
possibility that required permits may not be obtained on a timely manner or at all; the possibility
that capital and operating costs may be higher than currently estimated and may preclude
commercial development or render operations uneconomic; the possibility that the estimated
recovery rates may not be achieved; risk of accidents, equipment breakdowns and labor
disputes or other unanticipated difficulties or interruptions; the possibility of cost overruns or
unanticipated expenses in the work program; risks related to projected project economics,
recovery rates, and es timated NPV and anticipated IRR and other factors identified in the
Company's SEC filings and its filings with Canadian securities regulatory authorities.
Forward-looking statements are based on the beliefs, opinions and expectations of the
Company's management at the time they are made, and other than as required by applicable
securities laws, the Company does not assume any obligation to update its forward -looking
statements if those beliefs, opinions or expectations, or other circumstances, should change.