Scandium International Receives US$2.07M from Royalty Sale on Nyngan and Honeybugle Scandium Projects in Australia
Vancouver, British Columbia (FSCwire) - Scandium International Mining Corp. (TSX:SCY) (“Scandium International” or the “Company”) is pleased to announce that it has received US$2.07M (C$2.7M) from a private investor in return for the granting of a 0.7% royalty on gross mineral sales from both the Nyngan property and the Honeybugle property, in NSW, Australia.
Royalty Highlights:
US$2.07M cash proceeds received from sale of royalty
The royalty consists of a 0.7% gross sales royalty on both the Nyngan and adjacent Honeybugle properties, payable quarterly,
The royalty covers all minerals produced and sold from both properties, with no caps, minimums, term limits or early buyout provisions, and
The Company has retained all rights to commence and operate mining projects on both properties, and adjust land holdings, on a commercial basis as defined by management, consistent with other existing private and State royalties on the properties.
The proceeds from the sale of the royalty will be applied to complete the Definitive Feasibility Study (“DFS”) that was initiated in September 2015 and is currently underway. The DFS is being led by Lycopodium Minerals Pty Ltd, of Brisbane, Australia. The DFS will incorporate considerable metallurgical test work independently prepared for the Company over the previous five years, along with engineering, project design work, environmental work, mine planning, development work, and previous economic estimates. Additional metallurgical test work programs are currently underway now, along with studies and programs required to complete an Environmental Impact Statement scheduled for completion in Q4 of 2015. A small infill drilling program within the high-grade pit featured in the DFS is currently underway at Nyngan now.
George Putnam, CEO of Scandium International Mining Corp. commented:
“The Company is fully focused on working with Lycopodium and a cast of specialist engineering/mining consultants to complete a DFS suitable for funding project construction in 2016. This royalty funding ensures that we have the full resources needed to complete a DFS in a quality form, to meet the project standards set by State and Local requirements, and to bring the Nyngan Scandium Project to a financial investment decision-point next year.”
$2 million for a .7 royalty. The market likes the extra cash buffer. The royalty will probably look pretty good for the buyer in a few years but it is modest enough to not be a burden. Forward, forward, tally-ho, off to be the first primary scandium mine we go.
