Scandium Canada signs deal to sell La Ronciere project

Executive Summary

• Scandium Canada Ltd. has entered into a definitive agreement to sell its La Ronciere gold project to a wholly owned subsidiary of Barrick Mining Corp.
• The total transaction consideration is up to $590,000 in cash, structured as an initial payment and a contingent future payment.
• The sale allows Scandium Canada to generate non-dilutive financing and refocus resources on its flagship Crater Lake project.

Key Details

• Transaction Structure: Definitive agreement to sell the La Ronciere gold project to a wholly owned subsidiary of Barrick Mining Corp.
• Total Consideration: Up to $590,000 in cash.
• Payment Terms:
  • Initial payment of $390,000.
  • Additional contingent payment of up to $200,000, conditional upon Barrick publishing a prefeasibility study (PFS) demonstrating a mineral resource containing a specified minimum gold content.
• Asset Details (La Ronciere):
  • Location: Approximately 35 kilometres east of Desmaraisville, Quebec.
  • Access: Via Route 113, connecting Val d'Or and Chibougamau.
  • Size: 45 contiguous mining claims covering 25.1 square kilometres.
• Strategic Context: The divestiture is part of a rigorous management approach to the asset portfolio, aiming to create long-term shareholder value and consolidate Scandium Canada's position on its flagship Crater Lake project (currently in the prefeasibility stage, located 220 kilometres east of Schefferville in Nunavik).

Notable Quotes

• "This transaction represents a strategic milestone for Scandium Canada. It allows us to generate non-dilutive financing while focusing our resources and efforts on the development of our flagship project in Quebec, Crater Lake," said Guy Bourassa, chief executive officer.
• "The divestiture of the La Ronciere project is part of a rigorous management approach to our asset portfolio and a strategy focused on creating long-term value for our shareholders."