Scandium Canada (TSX-V:SCD) plans to enter into unsecured loan agreements with investors for C$750,000 ($832,936), instead of conducting a previously reported private placement.
The funds will be used primarily for general administrative expenses, as well as the development of aluminium-scandium powder.
In early March, Scandium Canada intended to complete a non-brokered private placement of unsecured convertible debentures to investors benefiting from prospectus exemption for a maximum of C$750,000.
As Mining.com.au previously reported, each debenture would be valued at C$10,000 and will bear interest at a rate of 10% calculated semi-annually, which will be due one year from the closing date of the offering.
A convertible debenture is a form of long-term debt that can be converted into shares of equity stock after a specified period. They are usually unsecured bonds or loans, often with no underlying collateral backing up the debt.
The loan agreements will bear interest at a rate of 10% calculated semi-annually. The interest will start to accrue on the closing date of the offering and will be calculated and payable semi-annually in cash or in shares at the sole option of the investor.
As part of the offering, Scandium Canada may issue up to 10 million shares.
Scandium Canada has the ultimate goal of bringing a global primary source of scandium into operation, enabling the development and commercialisation of aluminium-scandium (Al-Sc) alloys.
The company is leveraging its Al-Sc alloy development subsidiary and the development of its Crater Lake mining project to meet the growing need for lighter, greener, longer-lasting, high-performance materials.
Scandium is a lightweight metal with a density similar to aluminium. The wilver-white metal is considered a good conductor of electricity and heat.
Al-Sc alloys also provide lightweight, high strength, and corrosion resistant equipment parts. The alloys are used in the manufacturing of high-performance components for aerospace, aircraft, missiles, and satellites.
Write to Aaliyah Rogan at Mining.com.au
Images: Scandium Canada
