Scandium International Mining to Proceed With Feasibility for Nyngan Project

Scandium International Mining (TSX:SCY) has received C$2,167,118 pursuant to a private placement of common shares, which will allow the company to immediately proceed with a feasibility study for its Nyngan Scandium project in New South Wales. The company also announced the formation of a joint venture for the project in connection with the private placement, as well as a loan conversion agreement.
As quoted in the press release:

In connection with the equity placement, Scandium Investments LLC, an unrelated private investment company, will, on closing of the private placement, convert the US$2.5 million loan made to the Company into a 20% direct joint venture interest in the Company’s Nyngan and Honeybugle scandium projects in NSW, Australia.  The conversion of the loan into a joint venture interest will be made pursuant to the terms of the convertible loan agreement entered into in June 2014.
The Company also announces the appointment of Andrew C. Greig as a director to the Company’s board of directors.   Mr. Greig is a former Executive Director of Bechtel Group Inc., and previously was President of Bechtel’s Mining and Metals Global Business Unit, headquartered in Brisbane, Australia.
The Company entered into a US$2.5M convertible loan agreement with Scandium Investments LLC, (“SIL”) in June of 2014.  The loan terms provide for conversion of the loan into a 20% JV ownership interest in the Nyngan and Honeybugle Scandium Projects at such time as the Company successfully raises US$3.0M in project-related funding.  SIL and the Company have agreed that the conversion threshold has now been met, based on previous equity financings (US$1.62M) in June-August 2014, and a further US$1.66M through this latest equity financing.   As a result, the loan is extinguished on closing of the private placement and SIL will become a 20% JV share partner in the Company’s NSW scandium projects, held by our Australian subsidiary, EMC Metals Australia Pty Ltd.  In addition, SIL has agreed to accept outstanding loan interest (C$223,748) in Company common shares at C$0.10 per share, and has further agreed to participate in this latest equity private placement.

Scandium International has also appointed Andrew Greig to its board:

Andrew C. Greig joins the SCY Board with 35 years of experience in the mining and natural resource industry with Bechtel Group Inc., a global engineering, construction and project management company.  Mr. Greig has held numerous positions with Bechtel, most recently as SVP and Global Manager of Human Resources.  Mr. Greig served on the Bechtel Board as a Director and was President of the Mining and Metals Global Business Unit, centered in Brisbane, Australia for 12 years, prior to his HR role.   He brings direct experience in developing minerals, resource, power, refining, and chemical businesses in 20 countries across six continents.

Scadnium International CEO, George Putnam, said:

The transactions announced today are significant as we now have the capital and a debt-free balance sheet to advance the Nyngan Scandium Project towards being the world’s first significant scale scandium-only producing project, creating value for all stakeholders, from existing shareholders to end users.   We will now immediately proceed with a feasibility study, apply our final designs to a scandium mine and on-site processing facility, and complete the necessary project development steps to seek construction financing next year.  We also intend to pursue additional offtake agreements which will further demonstrate the strong demand for scandium we see from end users in a number of areas and products.   The manufacturing sector has been waiting for a dependable scandium supply that is both scalable commercially, and located in a proven, stable mining jurisdiction, and we intend to meet that need.

Click here for the full press release.