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Independent Reviews for Venture Investors

SCY.TO - On hold.

Updated: Sep 21


Scandium International Mining Corp. (SCY.TO) is focused on developing its Nyngan Scandium Project, located in NSW, Australia, into the world's first scandium-only producing mine. 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. The project has received all key approvals, including a development consent and a mining lease, necessary to proceed with project construction.


Coverage was initiated on May 2017, with notes issued on September 2017, February 2018, August 2018, February 2018. September 2019. June 2020, February 2021 and November 2021.

New Releases


Nov. 8 - Issue an Update on CMR Development Program with Phoenix Mine: Early work on the development program has now confirmed the presence of significant aluminum content in both the Phoenix Mine copper oxide ore and raffinate. This contained aluminum represents a suitable feedstock for high purity alumina (HPA) product manufacture, and is now anticipated to play a significant role in overall CMR project economics.


i) Aluminum ore grades at Phoenix Mine indicate HPA feedstock suitability.

ii) HPA is now a key product target in the joint development program.

iii) An HPA circuit would locate inside the mine gate, and generate a final product.

iv) The full HPA circuit is covered by a US Patent application, filed by the Company.

v) No change to US$2.7M joint development budget or timetable for HPA addition.


Apr. 18 - Announces Updated Strategic Focus & Leadership Changes: Completed an internal review of its portfolio of assets and projects to determine the appropriate allocation of capital between the scandium activities and the recently announced initiatives on Critical Metals Recovery (CMR) and High Purity Alumina (HPA). The board has decided that the best return on invested capital for its shareholders is to prioritize the Company's portfolio of scandium assets including the Nyngan Scandium Project that already holds a mining license and it will idle its CMR and HPA initiatives.


As a result, there have been several management and board changes: i) Peter Evensen has been appointed interim CEO of the Company, replacing George Putnam; ii) Willem P C Duyvesteyn, Chief Technical Officer and Director, has resigned his position and from the Board of Directors; iii) Edward Dickinson, Chief Financial Officer, has resigned from his role as CFO; iv) and Warren K. Davies has resigned from the Board of Directors.


In addition to these changes, Peter Evensen and Chris Evensen, both directors of the Company, both intend to exercise previously issued and held options to acquire 500,000 shares at C$0.15 and 400,000 shares at $0.15, respectively, with immediate effect which will result in C$135,000 in cash proceeds being received by the Company.


Apr. 19 - Announces Private Placement: Non-brokered private placement of up to 33.3M units at C$0.09 cent (Warrants C$0.1075 cents) for up to C$3.0M. The Company's largest shareholder, Scandium Investments LLC, has agreed to participat in an amount of US$500,000.


May 24 - Announces Closing of First Tranche of Non-Brokered Private Placement: Aggregate gross proceeds of C$2,0M through the sale of 23,169,444 units (each, a "Unit") at a price of C$0.09 per Unit. The Company expects to close the second tranche of the Offering on or about June 3, 2022. Each Unit issued pursuant to the first tranche consists of one common share of the Company (a "Common Share") and one share purchase warrant (a "Warrant"). Each Warrant will entitle the holder to acquire a Common Share at C$0.1075 for sixty (60) months until May 20, 2027.


Scandium Investments LLC's Report on Ownership of Shares of the Company: On May 20, 2022, Scandium Investments LLC ("SIL"), a limited liability company existing under the laws of Nevada, acquired 7,202,222 Units at a price of $0.09 per Unit for the aggregate purchase price of $648,199.98 pursuant to the Offering.


June 6 - Announces Closing of Second Tranche and Upsizing of Private Placement:Within the second tranche:Raised aggregate gross proceeds of C$3,115,100 through the sale of 34,612,219 units at a price of C$0.09 per Unit. The aggregate proceeds exceed the C$3,000,000 placement amount originally announced to the market and, given the positive investor response, the Company has increased the Offering up to C$3,568,023 for 39,644,699 units.


June 15 - Announces Closing of Third and Final Tranche of Non-Brokered Private Placement: In total (first, second and third tranche) C$ C$3,402,290 was raised through the issuance of 37,803,218 units at C$0.09 per Unit. Each Unit consists of one common share of the Company (a "Common Share") and one share purchase warrant (a "Warrant"). Each Warrant will entitle the holder to acquire a Common Share at C$0.1075 for sixty (60) months until June 14, 2027.


June 29 - Announce Voting Results from the Annual Meeting General Meeting of Shareholders.:


Summary

Following the CMR (Critical Metal Recovery) project update in early November 2021, the "Updated Strategic Focus and Leadership Changes" now roughly five months old was by far the most significant release of the period.


This took many investors by suprise. Its difficult to understand that after the last five years the company has come full circle to re-priortizing the Nyngan Project. The board of director has been roughly the same all along. Therefore it is highly likely that the previous course of action had been endorsed by all members. Granted the developments were occcuring at a painfully slow pace but the direction had to be suppported to be implemented.


A quick look back, Scandium International Mining Corp. received its original Mine Lease Grant in May 2017. A new one was issued July 2019 and eventually revised back. In the mean time, after a series of unsuccessful Letter of Intent (LOI) to qualify the industrial applications of scandium with various industry innovators towards off-takes, a pivot towards Critical Metal Recovery was announced in May 2020. Scandium International eventually entered into an agreement with the Nevada Gold Mines, specifically for the Phoenix Mine in June 2021 then April 2022, full circle.


The subsequent financing of $3.4M at $0.09 cents with warrants ($0.1075), only 19% above the offer price and valid for 60 months, suggests a rather opportunistic consolidation of ownership.


Immediately prior to the Offering, SIL owned 66,268,694 Common Shares, representing 20.84% of the then issued and outstanding Common Shares of the Company. As a result of the foregoing Offering, SIL owns and/or has control over 73,470,916 Common Shares of the Company and SIL's ownership of the issued and outstanding Common Shares of the Company increased from 20.84% to 21.53% on an undiluted basis. In addition, SIL acquired 7,202,222 Warrants pursuant to the Offering. If SIL were to exercise all of its Warrants, SIL would own 80,673,138 Common Shares of the Company, representing 23.15% of the issued and outstanding Common Shares of the Company on a partially diluted basis, assuming no further Common Shares of the Company have been issued.


In short

Scandium Mining International is on a path to prioritize its portfolio of assets. However, thus far, events continue to unfold at a slow pace. Five months after the re-organization, management section of the site has not been updated.


In the last filing (FORM 10­Q) on June 30th 2022:

Our plan of operation for the remainder of 2022, is to continue to reduce costs and position the Company to benefit from the growing market adoption of Scandium. This includes moving forward with our patent portfolio and filing a new mine lease application to re­establish the original Mining License, giving access to the full scandium resource at Nyngan and conduct a drilling campaign at Honeybugle to further delineate the resource.


It is now middle of September 2022 and still no word. Even with a push towards a new mining lease application, the company is in no position to secure off-takes and it could take quite some time for this to happen.


There is a higher likelihood of a strategic acquisition prior Nyngan becomes a mine.


As a result, coverage will be put on hold.


DISCLAIMER: The work included in this article is based on current events, technical charts, and the author’s opinions. It may contain errors, and you shouldn’t make any investment decision based solely on what you read here. This publication contains forward-looking statements, including but not limited to comments regarding predictions and projections. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. The content of rally is provided for informational and entertainment purposes only and is not a recommendation to buy or sell any security. Always thoroughly do your own due diligence and talk to a licensed investment adviser prior to making any investment decisions - rally cannot take responsibility for your investment decisions.

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