Maybe the Scandium royalties are looking more likely.
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SCY and ALCERECO Sign MOU and Scandium Offtake Agreements
Reno, Nevada (FSCwire) - Scandium International Mining Corp. (the “Company” or “Scandium International”) (TSX: SCY) announces today that it has signed a memorandum of understanding (MOU) with ALCERECO Inc. of Kingston, Ontario, forming a strategic alliance to develop markets and applications for aluminum alloys containing scandium. To further that alliance, and to reinforce the capability of both companies to deliver product developed for Al-Sc alloy markets, Scandium International and ALCERECO have also signed an offtake agreement governing sales terms of scandium oxide product (scandia) produced from the Nyngan Scandium Project in NSW, Australia. The offtake agreement specifies deliveries of scandium oxide product commencing in early 2017.
Scandium as an alloying agent in aluminum allows for aluminum metal products that are much stronger, more easily weldable and exhibit improved performance at higher temperatures than current aluminum based materials. This means lighter structures, lower manufacturing costs and improved performance in areas that aluminum alloys do not currently compete.
MOU AND OFFTAKE AGREEMENT HIGHLIGHTS:
- 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. George Putnam, CEO of Scandium International Mining Corp. commented:“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.”ABOUT ALCERECO INC.ALCERECO is an advanced materials development company that provides services and specialty processing capabilities to companies innovating in a diverse range of markets, including aerospace, automotive, electronics and consumer/sporting goods.ALCERECO staff work with a range of materials and processes and have the tools and knowledge to take on leading-edge projects such as development of aluminum-scandium alloys, specialty ceramics, composites and graphene enhanced materials. The company has a particular focus on lightweight materials capable of delivering greater strength, functionality and exceptional performance.The company operates out of the Grafoid Global Technology Centre in Kingston, Ontario that was originally founded by Alcan Aluminum in the 1940’s. ALCERECO is a Canadian private company, and a wholly-owned subsidiary of Ottawa-based Grafoid Inc., a global leader in diverse graphene application development."
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- The royalty terms are :-
- " Jervois retains a production royalty on the Nyngan project of 1.7% of sales price for scandium
and any other products produced from the site,
• The production royalty extends for a term of 12 years from first production date, and
• The minimum royalty payable is based on an assumption of 10 tonnes per annum of
scandium oxide production."
(20min delay)