Scandium International and ALCERECO Sign MOU, Scandium Offtake

Scandium International Mining (TSX:SCY) has signed a memorandum of understanding with ALCERECO for the formation of a strategic alliance to develop markets and applications for aluminum alloys containing scandium. The companies have also signed an offtake agreement for scandium from the Nyngan project in Australia, specifying deliveries of scandium oxide product to begin in early 2017.

As quoted in the press release, highlights of the agreements include:

• The MOU covers areas of joint cooperation and development of aluminum alloys that contain and are enhanced by the addition of scandium,
• The MOU recognizes the specialized capabilities ALCERECO holds for the design, manufacture, and testing of Al-Sc alloy materials,
• The offtake agreement outlines standard sale terms on 7,500 kg of scandia per annum, for a term of three years beginning in 2017, which can be extended, and
• The offtake agreement contains both fixed and variable pricing components, which are subject to confidentiality.

Scandium International Mining CEO, George Putnam, said:

This strategic alliance allows SCY to partner with an established alloy technology group to design, develop and demonstrate fit-for-purpose scandium-content aluminum alloys for existing aluminum market applications. The scandia offtake agreement directly supports the efforts of ALCERECO to pursue these individual markets, and demonstrates the keen interest in scandium-content products that exists in the aluminum alloy markets today.

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.

Click here to read the Scandium International Mining (TSX:SCY) press release