Get Started for Free Contexxia identifies hard-to-find pieces of information in SEC filings. No more highlighters, no more redlining, no more poring over huge documents. SCANDIUM INTERNATIONAL MINING CORP. (1408146) 10-Q published on May 12, 2021 at 8:01 am
Reporting Period: Mar 30, 2021
The following discussion of the operating results, corporate activities and financial condition of Scandium International Mining Corp. (hereinafter referred to as “we”, “us”, “Scandium International”, “SCY”, or the “Company”) and its subsidiaries provides an analysis of the operating and financial results between December 31, 2020 and March 31, 2021 and a comparison of the material changes in our results of operations and financial condition between the three-month period ended March 31, 2020 and the three-month period ended March 31, 2021. This discussion should be read in conjunction with Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our Annual Report on Form 10-K for the year ended December 31, 2020.
We are also pursuing industry interest in our technology and capability to produce high purity alumina (HPA) from various aluminum-containing feedstocks. This project effort is known as the “HPA Project,” and it has a focus on global opportunities. This opportunity can be considered as complimentary to specific CMR Projects located at copper mines, could be associated with non-mine aluminum feedstock suppliers on-site, or could be stand-alone. Aluminum is also included on the US Department of Commerce 35 Critical Metals list, and the Company considers HPA to be contained within its CMR program descriptions and initiatives at this time. The Company filed for US Patent Office protection through patent application filings on HPA processing technology in 2020.
The Company funded the acquisition of these project assets and rights from Jervois Mining Ltd. with proceeds from a June 2014 US$2.5M Convertible Note, issued by Scandium Investments LLC (“SIL”). The convertible option was subsequently exercised by SIL in August 2015, whereby SIL became a 20% JV owner in Nyngan and Honeybugle, as a 20% shareholder in EMC Australia.
In June 2017, pursuant to a share exchange agreement, the Company acquired SIL’s 20% interest in EMC Australia in exchange for an aggregate of 58,830,645 SCY common shares. At that time, SIL also received a right to nominate two individuals to the board of the Company for so long as SIL holds at least 15% of SCY’s issued and outstanding
The Company intends to commence construction of a CMR separation facility and an off-site product finish plant in 2022, to commission a project in early 2023, and make product available for sale by mid-2023. Project work on a potential HPA project will follow a similar course to a CMR Project, simultaneously, and also subject to identifying suitable industry partners, in individual situations where a partner is deemed required.
The Company has made two filings with the US Patent Office seeking patent protection on various aspects of its relevant technical program ideas, using technical information from preliminary bench scale testing with actual copper SX raffinate solutions. The first of those applications, filed in 2018, was granted in April 2021, US Patent No, 10,988,828, titled ‘Extraction of Scandium Values from Copper Leach Solutions”. The Company believes this extraction technology can be demonstrated with a working and successful copper plant installation, with proven knowhow. The Company intends to pursue a copper industry partner to demonstrate the economic viability of this technology, t and to fully participate in the operation, ownership and production economics associated with a plant asset that is developed in concert with that partner.