Scandium Canada (TSX-V:SCD) is undertaking a non-brokered private placement to raise C$1 million ($1.1 million).
The offer is for up to 25 million units at C$0.04 per unit. Each unit comprises one common share and one share purchase warrant, exercisable at C$0.05 for one share within two years.
The cash raised will be used for general and corporate working capital purposes.
Scandium Canada, which has a market capitalisation of C$5.5 million, is focused on advancing its flagship Crater Lake Scandium and Rare Earth Project in Québec.
The property comprises 96 contiguous claims spanning 47km2 and is located 200km northeast of Schefferville, Québec.
In August, Scandium Canada completed 2,854m of diamond drilling at Crater Lake.
The program included geomechanical drilling to determine the optimal angles of the slopes of the proposed open pit design for the Prefeasibility Study (PFS).
The campaign was also targeting a potential extension of the TG Zone for an additional 250m length.
CEO Guy Bourassa told Mining.com.au in August the resources identified within the TG Zone could provide the market with scandium for decades to come.
The company reports that mineralisation is present in all holes. In total, 1,185m in seven holes have been drilled on the southern extension.
The zone is open in all directions and its full potential remains to be confirmed.
Scandium says Crater Lake is one of the largest primary scandium projects in the world, with an indicated resource of 7.3 million tonnes @ 282 grams per tonne (g/t) and an inferred resource of 13.2 million tonnes @ 264 g/t for the Northern Lobe of the TG Zone.
Scandium is a silvery-white lightweight metal, similar in density to aluminium, that is mixed in small quantities with aluminium to create alloys that produce lightweight, high-strength and corrosion resistant material.
These high-performance alloys are then used in aerospace, aircraft, missiles, and satellites. Scandium is also listed as a critical mineral in countries including the US, Canada and Australia because of its importance in defence and clean energy technology such as electric vehicles, battery casings and wind turbine parts.
Nearly all scandium production comes from China and Russia as a by-product. Global production is currently around 35 to 40 tonnes per annum, but Scandium Canada says this would be much higher if more supply was available.
According to an EY market study done in 2022, demand is set to grow from 26 tonnes in 2021 to 1,970 tonnes by 2040.
Write to Angela East at Mining.com.au
Images: Scandium Canada
