SCYYF Scandium International Mining Corporation (PK)

PART I. FINANCIAL INFORMATION

 

Item 1. Financial Statements

 

 

 

UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

 

THREE MONTHS ENDED MARCH 31, 2024

 

 

Scandium International Mining Corp.

CONDENSED INTERIM CONSOLIDATED BALANCE SHEETS

(Expressed in US Dollars) (Unaudited)

 

 

Nature and continuance of operations (Note 1)

 

The accompanying notes are an integral part of these condensed interim consolidated financial statements.

 

 

Scandium International Mining Corp.

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

(Expressed in US Dollars) (Unaudited)

 

 

The accompanying notes are an integral part of these condensed interim consolidated financial statements.

 

 

Scandium International Mining Corp.

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS

(Expressed in US Dollars) (Unaudited)

 

 

 

There were no significant non-cash investing and financing activities during the periods ended March 31, 2024, and 2023.     

 

The accompanying notes are an integral part of these condensed interim consolidated financial statements.

 

 

 Scandium International Mining Corp.

 CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN

 SHAREHOLDERS’ EQUITY

 (Expressed in US Dollars) (Unaudited)

 

 

The accompanying notes are an integral part of these condensed interim consolidated financial statements.

 

 

 

1.	NATURE AND CONTINUANCE OF OPERATIONS

 

Scandium International Mining Corp. (“The Company”)is a specialty metals and alloys company focusing on scandium and other specialty metals.

 

The Company was incorporated under the laws of the Province of British Columbia, Canada in 2006. The Company currently trades on the Toronto Stock Exchange under the symbol “SCY”.

 

The Company’s focus is on the exploration and evaluation of its specialty metals assets, specifically the Nyngan scandium deposit located in New South Wales, Australia. The Company is an exploration stage company and anticipates incurring significant additional expenditures prior to production at any and all of its properties.

 

These condensed interim consolidated financial statements have been prepared on a going concern basis that contemplates the realization of assets and discharge of liabilities at their carrying values in the normal course of business for the foreseeable future. These financial statements do not reflect any adjustments that may be necessary if the Company is unable to continue as a going concern.

 

The Company currently earns no operating revenues and will require additional capital in order to advance the Nyngan property. The Company’s ability to continue as a going concern is uncertain and is dependent upon the generation of profits from mineral properties, obtaining additional financing and maintaining continued support from its shareholders and creditors. These are material uncertainties that raise substantial doubt about the Company’s ability to continue as a going concern. In the event that additional financial support is not received, or operating profits are not generated, the carrying values of the Company’s assets may be adversely affected.

 

The political upheavals in various countries have caused significant volatility in commodity prices. While these effects are expected to be temporary, the duration of the business disruptions internationally and related financial impact cannot be reasonably estimated at this time.

 

2.	BASIS OF PRESENTATION

 

Basis of presentation

 

The accompanying unaudited condensed interim consolidated financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”). The condensed interim consolidated financial statements include the consolidated accounts of the Company and its wholly owned subsidiaries with all significant intercompany transactions eliminated.  In the opinion of management, all adjustments necessary for a fair statement of the consolidated financial position, results of operations and cash flows for the interim periods have been made. Certain information and footnote disclosures normally included in the consolidated financial statements prepared in accordance with generally accepted accounting principles of the United States of America (“US GAAP”) have been condensed or omitted pursuant to such SEC rules and regulations. These condensed interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2023 and with our Annual Report on Form 10-K filed with the SEC on April 1, 2024. Operating results for the three-month period ended March 31, 2024 may not necessarily be indicative of the results for the year ending December 31, 2024.

 

These unaudited condensed interim consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, EMC Metals USA Inc., Scandium International Mining Corp., Norway AS, SCY Exploration Finland Oy, and EMC Metals Australia Pty Ltd. (“EMC-A”).

 

Use of estimates

 

The preparation of unaudited condensed interim consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period. The Company regularly evaluates estimates and assumptions related to the deferred income tax asset valuations, asset impairment, stock-based compensation and loss contingencies. The Company bases its estimates and assumptions on current facts, historical experience, and various other factors that it believes to be reasonable under the circumstances. The actual results experienced by the Company may differ materially and adversely from the Company’s estimates. To the extent there are material differences between estimates and the actual results, future results of operations will be affected.

 

The Company considers itself to be an exploration stage company and will consider the transition to development stage after it receives funding to begin mine construction, and board approval.

 

Fair value of financial assets and liabilities

 

The Company measures the fair value of financial assets and liabilities based on US GAAP guidance which defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements.

 

The Company classifies financial assets and liabilities as held-for-trading, available-for-sale, held-to-maturity, loans and receivables or other financial liabilities depending on their nature. Financial assets and financial liabilities are recognized at fair value on their initial recognition, except for those arising from certain related party transactions which are accounted for at the transferor’s carrying amount or exchange amount.

 

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Scandium International Mining Corp.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2024

(Expressed in US Dollars) (Unaudited)

 

 

2.	BASIS OF PRESENTATION (cont’d…)

 

Financial assets and liabilities classified as held-for-trading are measured at fair value, with gains and losses recognized in net income. Financial assets classified as held-to-maturity, loans and receivables, and financial liabilities other than those classified as held-for-trading are measured at amortized cost, using the effective interest method of amortization. Financial assets classified as available-for-sale are measured at fair value, with unrealized gains and losses being recognized as other comprehensive income until realized, or if an unrealized loss is considered other than temporary, the unrealized loss is recorded in income.

 

Financial instruments, including cash, receivables, reclamation bond, accounts payable and accrued liabilities, and accounts payable with related parties, are carried at amortized cost, which management believes approximates fair value due to the short-term nature of these instruments.

 

The Company had no leases in the quarter ending March 31, 2024 or 2023.

 

The following table presents information about the assets that are measured at fair value on a recurring basis as at March 31, 2024 and indicates the fair value hierarchy of the valuation techniques the Company utilized to determine such fair value. In general, fair values determined by Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets. Fair values determined by Level 2 inputs utilize data points that are observable such as quoted prices, interest rates and yield curves. Fair values determined by Level 3 inputs are unobservable data points for the asset or liability, and include situations where there is little, if any, market activity for the asset:

 

		March 31, 2024				Quoted Prices in Active Markets (Level 1)				Significant Other Observable Inputs (Level 2)				Significant Unobservable Inputs (Level 3)
Cash		$	902,298			$	902,298			$	-			$	-
Derivative liability - warrants		$	(326,997	)		$	-			$	(326,997	)		$	-

 

Recently Adopted and Recently Issued Accounting Standards

 

There are no recently issued accounting standards updates that are currently expected to have a material impact on the Company.

 

3.	MINERAL PROPERTY INTERESTS

 

March 31, 2024		Scandium and other
Balance, March 31, 2024, December 31, 2023		$	704,053

 

Title to mineral property interests involves certain inherent risks due to the difficulties of determining the validity of certain claims as well as the potential for problems arising from the frequently ambiguous conveyancing history characteristic of many mineral property interests. The Company has investigated title to all of its mineral property interests and, to the best of its knowledge, title to all of its properties is in good standing.

 

SCANDIUM PROPERTIES

 

Nyngan, New South Wales Property

 

The Company holds a 100% interest in the Nyngan property in New South Wales, Australia (“NSW”).

 

Royalties attached to the Nyngan property include a 0.7% royalty on gross mineral sales on the property, a 1.5% Net Profits Interest royalty to private parties involved with the early exploration on the property, and a 1.7% Net Smelter Returns royalty payable for 12

 

years after production commences. Another revenue royalty is payable to private interests of 0.2%, subject to a $370,000 cap.  A NSW minerals royalty will also be levied on the project, subject to negotiation, currently 4% on revenue.

 

Honeybugle property, Australia

 

The Company holds a 100% interest in the Honeybugle property.

 

Kiviniemi Scandium Property Finland

 

In December 2023, the Company decided not to renew an Exploration License for the Kiviniemi Scandium Property in central Finland from the Finnish regulatory body governing mineral exploration and mining in Finland. As at March 31, 2024 the Company has a reclamation bond of $10,792 (€10,000). (December 31, 2023 - $11,037 (€10,000)) that it is in the process of recovering.

 

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Scandium International Mining Corp.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2024

(Expressed in US Dollars) (Unaudited)

 

 

4.	RELATED PARTY TRANSACTIONS

 

During the three months ended March 31, 2024, the Company expensed $Nil for stock-based compensation for stock options issued to Company directors.  During the three months ended March 31, 2023, the Company expensed $24,585 for stock options issued to Company directors.

 

As at March 31, 2024, the Company owed $4,884 to an officer of the Company (December 31, 2023 - $5,104)

 

5.	CAPITAL STOCK AND ADDITIONAL PAID IN CAPITAL

 

The holders of common stock are entitled to one vote for each share held. There are no restrictions that limit the Company’s ability to pay dividends on its common stock. The Company has not declared any dividends since incorporation. The Company’s common stock has no par value per common share.

 

During the three months ended March 31, 2024, and the year ended December 31, 2023, there were no share issuances pursuant to private placements.

 

Warrants

 

A summary of warrant activity for the quarter ended March 31, 2024, is as follows:

 

		Number of warrants				Exercise price			Expiry date
Outstanding December 31, 2023			37,803,218			CAD$	0.1075		May 20 - June 14, 2027
Outstanding March 31, 2024			37,803,218			CAD$	0.1075

 

A fair value of the derivative liability of $1,781,779 was estimated on the date of the subscription using the Black-Scholes pricing model. A fair value of the derivative liability of $283,373 was estimated at December 31, 2023, using the Black-Scholes pricing model. For the quarter ended March 31, 2024, there was a non-cash gain on derivative liability – warrants of $53,068 and an unrealized foreign exchange loss of $9,443 resulting in a fair value as at March 31, 2024 of $326,997 with the following weighted average assumptions:

 

		March 31, 2024				December 31, 2023
Exercise price		CAD$	0.1075			CAD$	0.1075
Stock price		CAD$	0.025			CAD$	0.025
Expected term (in years)			3.23				3.5
Expected dividend yield			-				-
Expected stock price volatility			114.98	%			100.02	%
Risk-free interest rate			3.63	%			3.59	%

 

Stock Options

 

The Company established a stock option plan (the “Plan”) under which it is authorized to grant options to executive officers and directors, employees and consultants. The number of options granted under the Plan shall not exceed 10% of the shares outstanding. Under the Plan, the exercise period of the options may not exceed ten years from the date of grant and vesting is determined by the Board of Directors. 

 

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Scandium International Mining Corp.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2024

(Expressed in US Dollars) (Unaudited)

 

 

5.	CAPITAL STOCK AND ADDITIONAL PAID IN CAPITAL (cont’d…)

 

Stock option transactions are summarized as follows:

 

		Stock Options
		Number				Weighted average exercise price in Canadian $
Outstanding, December 31, 2022			34,665,000				0.14
Granted			11,400,000				0.035
Expired			(6,050,000	)			0.22
Outstanding, December 31, 2023			40,015,000			$	0.10
Outstanding, March 31, 2024			40,015,000			$	0.10
Number currently exercisable			40,015,000			$	0.10

 

As at March 31, 2024, incentive stock options were outstanding as follows:

 

		Number of Options Outstanding				Number of Options Exercisable				Exercise Price in Canadian $			Expiry Date
Options
			3,240,000				3,240,000				0.150		May 9, 2024*
			50,000				50,000				0.130		June 24, 2024
			7,450,000				7,450,000				0.065		March 19, 2025
			100,000				100,000				0.075		May 22, 2025
			5,900,000				5,900,000				0.140		November 13, 2025
			6,175,000				6,175,000				0.180		May 23, 2026
			5,700,000				5,700,000				0.090		June 24, 2027
			11,400,000				11,400,000				0.350		November 14, 2028
			40,015,000				40,015,000

* These options expired unexercised subsequent to March 31, 2024.

 

As at March 31, 2024 the Company’s outstanding and exercisable stock options have an aggregate intrinsic value of $Nil (December 31, 2023 - $Nil).

 

6.	TREASURY STOCK

 

		Number				Amount
Treasury shares, March 31, 2024, and December 31, 2023			1,033,333			$	1,264,194
			1,033,333			$	1,264,194

 

Treasury shares comprise shares of the Company which cannot be sold without the prior approval of the TSX.

 

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Scandium International Mining Corp.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2024

(Expressed in US Dollars) (Unaudited)

 

 

7.	SEGMENTED INFORMATION

 

The Company’s mineral properties are located in Australia.  The Company’s capital assets’ geographic information is as follows:

 

March 31, 2024		Australia				Total
Mineral property interests			704,053				704,053
		$	704,053			$	704,053

 

December 31, 2023		Australia				Total
Mineral property interests			704,053				704,053
		$	704,053			$	704,053

 

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

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, 2023, and March 31, 2024, and a comparison of the material changes in our results of operations and financial condition between the three-month periods ended March 31, 2024, and the three-month periods ended March 31, 2023. 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, 2023.

 

This discussion and analysis contain forward-looking statements that involve risks, uncertainties and assumptions. Our actual results may differ materially from those anticipated in these forward-looking statements as a result of many factors, including, but not limited to, those set forth under the heading “Risk Factors and Uncertainties” in our Annual Report on Form 10-K for the year ended December 31, 2023, and elsewhere in this Quarterly Report on Form 10-Q.

 

The condensed interim statements have been prepared in accordance with US Generally Accepted Accounting Principles, as required under U.S. federal securities laws applicable to the Company, and as permitted under applicable Canadian securities laws. The Company is a reporting company under applicable securities laws in Canada and the United States. The reporting currency used in our financial statements is the United States Dollar.

 

The information contained within this report is current as of May 8, 2024, unless otherwise noted. Additional information relevant to the Company’s activities can be found on SEDAR at www.sedar.com and on EDGAR at www.sec.gov.

 

Technical information in this Form 10Q, including the MD&A, has been reviewed and approved by John Thompson, a Qualified Person as defined by Canadian National Instrument 43-101 (“NI 43-101”).

 

Cautionary Note to U.S. Investors Regarding Reserve and Resource Estimates

 

The Company uses Canadian Institute of Mining, Metallurgy and Petroleum definitions for the terms “proven reserves”, “probable reserves”, “measured resources” and “indicated resources.” U.S. investors are cautioned that while these terms are recognized and required by Canadian regulations, including National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”), the U.S. Securities and Exchange Commission (“SEC”) does not recognize them. Canadian mining disclosure standards differ from the requirements of the SEC under SEC Industry Guide 7, and reserve and resource information referenced in this Form 10-Q may not be comparable to similar information disclosed by companies reporting under U.S. standards. In particular, and without limiting the generality of the foregoing, the term “resource” does not equate to the term “reserve.” Under United States standards, mineralization may not be classified as a “reserve” unless the determination has been made that the mineralization could be economically and legally produced or extracted at the time the reserve determination is made. The SEC’s disclosure standards normally do not permit the inclusion of information concerning “measured mineral resources” or “indicated mineral resources” or other descriptions of the amount of mineralization in mineral deposits that do not constitute “reserves” by U.S. standards in documents filed with the SEC. Disclosure of “contained ounces” in a resource estimate is permitted disclosure under Canadian regulations; however, the SEC normally only permits issuers to report mineralization that does not constitute “reserves” by SEC standards as tonnage and grade without reference to unit measures. The requirements of NI 43-101 for identification of “reserves” are also not the same as those of the SEC, and reserves in compliance with NI 43-101 may not qualify as “reserves” under SEC standards.

 

 

Cautionary Note Regarding Forward-Looking Statements

 

Certain statements made in this Quarterly Report on Form 10-Q may constitute forward-looking statements about the Company and its business. Forward-looking statements are statements that are not historical facts and include, but are not limited to, reserve and resource estimates, estimated value of the project, projected investment returns, anticipated mining and processing methods for the project, the estimated economics of the project, anticipated scandium recoveries, production rates, scandium grades, estimated capital costs, operating cash costs and total production costs, planned additional processing work and environmental permitting. The forward-looking statements in this report are subject to various risks, uncertainties and other factors that could cause the Company's actual results or achievements to differ materially from those expressed in or implied by forward-looking statements. These risks, uncertainties and other factors include, without limitation, risks related to uncertainty in the demand for scandium and pricing assumptions; uncertainties related to raising sufficient financing to fund the Nyngan Scandium Project in a timely manner and on acceptable terms; changes in planned work resulting from logistical, technical or other factors; the possibility that results of work will not fulfill expectations and realize the perceived potential of the Company's properties; uncertainties involved in the estimation of scandium reserves and resources; the possibility that required permits may not be obtained in a timely manner or at all; the possibility that capital and operating costs may be higher than currently estimated and may preclude commercial development or render operations uneconomic; the possibility that the estimated recovery rates may not be achieved; risk of accidents, equipment breakdowns and labor disputes or other unanticipated difficulties or interruptions; the possibility of cost overruns or unanticipated expenses in the work program; risks related to projected project economics, recovery rates, and estimated NPV(“Net Present Value”) and anticipated IRR(“Internal Rate of Return”) and other factors identified in the Company's SEC filings and its filings with Canadian securities regulatory authorities. Forward-looking statements are based on the beliefs, opinions and expectations of the Company's management at the time they are made, and other than as required by applicable securities laws, the Company does not assume any obligation to update its forward-looking statements if those beliefs, opinions or expectations, or other circumstances, change.

 

Scandium International Corporate Overview

 

Scandium International Mining Corp. (“The Company”) is a specialty metals and alloys company focused on developing the production and sale of scandium and other specialty metals. The Company intends to utilize its know-how and, in certain instances, patented technologies to maximize opportunities in scandium and other specialty metals. 

 

Our most advanced project is the Nyngan Scandium Project, located in New South Wales, Australia (the “Nyngan Scandium Project”), on which we hold a mine lease grant and a development consent. We also hold an exploration license on a scandium mineral property located near Nyngan known as the “Honeybugle Scandium property.” We did not renew an exploration license on a scandium mineral property in Finland, known as the “Kiviniemi Scandium property.”

 

In November 2023 we commenced physical development of the Nyngan Scandium Project following the results of the 2023 Nyngan drilling program which better defined the western boundary of the existing resource. The actions included:

 

• Survey conducted of the site to establish and peg the boundaries for proposed work in accordance with State Significant Development 5157 (“SSD 5157”).

 

• Soil management works including the establishment of water exclusion embankments and the stripping of topsoil, with subsequent stockpiling.

 

• Construction and placement of temporary office quarters at the site for future site development activities.

 

 

In the first quarter of 2023, we completed a drilling program at the Honeybugle Scandium Project which discovered a new Scandium enriched laterite formation approx. 2 meters below the surface area at the Woodlong prospect within the Honeybugle Exploration License 7977 area, where 32 vertical air core holes were drilled in an approximately 300m x 400m area.

 

During the first quarter of 2022, SCY completed an internal review of its portfolio of assets and projects. The purpose of this review was to determine the appropriate allocation of capital between the Company’s scandium activities and the recently announced initiatives on Critical Metals Recovery (CMR) and High Purity Alumina (HPA). The board decided and announced on April 18, 2022, that the best return on invested capital for its shareholders is to prioritize the Company’s portfolio of scandium assets including the Nyngan Scandium Project and to idle its CMR and HPA initiatives. As a result of the review, leadership changes were also made with the appointment of an CEO and CFO and a downsizing of the board to four directors.

 

As its first priority, the new management completed a C$3.4 million non-brokered equity private placement which replenished cash balances and eliminated negative working capital. The second priority was to reduce costs, and the Company has been successful in reducing corporate G&A costs, including for example, that our CEO and CFO agreed to receive no cash compensation from their appointment in 2022 until present.

 

Our plan of operation for 2024 is to continue to advance commercial discussions with potential offtake partners. The completion of a sufficient number of offtake agreements totalling a minimum quantity is the critical factor to enable the Company to be in a position to consider taking a Final Investment Decision to put the Nyngan Scandium Project into production. At the same time, the capital raise in 2022, positive working capital and no debt, and the reduction of operating costs have given the Company time to be in a position to benefit from the growing market adoption of scandium.

 

We acquired a 100% interest in the Nyngan Scandium Project in June of 2014 pursuant to the terms of a settlement agreement with Jervois Mining Ltd. of Melbourne, Australia. The project is held through our Australian subsidiary, EMC Metals Australia Pty Ltd. (“EMC Australia”), which also holds the Honeybugle Scandium Property.

 

Principal Properties Review

 

Cautionary Note to U.S. Investors Regarding Resource Estimates

 

The Company’s technical disclosure in this section uses certain terms which are defined by the Canadian Institute of Mining, Metallurgy and Petroleum, and required to be disclosed in accordance with Canadian National Instrument 43-101 (“NI 43-101”). The disclosure standards in the United States Securities and Exchange Commission’s (the “SEC”) Subpart 1300 of Regulation S-K contain significant differences from the disclosure requirements of NI 43-101 and information presented in this section may not be comparable with United States standards in documents filed with the SEC. Accordingly, information concerning mineral deposits set forth in this section may not be comparable with information presented by companies using only United States standards in their public disclosures.

 

Nyngan Scandium Project (NSW, Australia)

 

Nyngan Property Description and Location

 

The Nyngan Scandium Project site is located approximately 450 kilometers northwest of Sydney, NSW, Australia and approximately 20 kilometers due west of the town of Nyngan, a rural town of approximately 2,900 people. The general area can be characterized as flat countryside and is classified as agricultural land, used predominantly for wheat farming and livestock grazing.

 

 

Figure 1: Location of Nyngan Project

 

 

Note: None of the Existing Mines identified in Figure 1 produce scandium.

 

 

Figure 2: Location of the Exploration Licenses and Mining Lease for the Nyngan Scandium Project

 

 

 

Note: All Exploration Licenses and Leases described in Figure 2 are held 100% by EMC-A.

 

Nyngan Feasibility Study

 

On April 18, 2016, the Company announced the results of an independent definitive feasibility study on the Nyngan Scandium Project. The technical report on the feasibility study entitled “Feasibility Study – Nyngan Scandium Project, Bogan Shire, NSW, Australia” is dated May 4, 2016, and was independently compiled pursuant to the requirements of NI 43-101 (the “Feasibility Study” or “DFS”).

 

Environmental Permitting/Development Consent/Mining Lease

 

On May 2, 2016, the Company announced the filing of an Environmental Impact Statement (“EIS”) with the New South Wales Department of Planning and Environment (the “Department”) in support of the planned development of the Nyngan Scandium Project. The EIS was prepared by R.W. Corkery & Co. Pty. Limited, on behalf of the Company’s subsidiary, EMC Australia, to support an application for Development Consent for the Nyngan Scandium Project. The EIS is a self-contained set of documents, which includes a Specialist Consultants’ Study Compendium, and is considered the foundational environmental document used to seek a Development Consent.

 

 

EIS Highlights:

 

●

The EIS finds residual environmental impacts represent negligible risk.

●

The proposed development design achieves sustainable environmental outcomes.

●

The EIS finds net-positive social and economic outcomes for the community.

●

Nine independent environmental consulting groups conducted analysis over five years, and contributed report findings to the EIS.

●

The Nyngan Project development is estimated to contribute A$12.4M to the local and regional economies, and A$39M to the State and Federal economies, annually.

●

The EIS is fully aligned with the DFS and with a NSW Mining License Application for the Nyngan Project.

 

The conclusion statement in the EIS reads as follows: “In light of the conclusions included throughout this Environmental Impact Statement, it is assessed that the Proposal could be constructed and operated in a manner that would satisfy all relevant statutory goals and criteria, environmental objectives and reasonable community expectations.”

 

Development Consent:

 

The Development Consent is considered the key approval required to build a mine facility in Australia. As the Nyngan Scandium Project is considered a State Significant Project (capital cost + A$30 million), the Minister of Planning and Environment is designated to manage the investigation and approval process for any granting of a Development Consent.

 

On November 10, 2016, the Company announced that the Development Consent had been granted. This Development Consent represents an approval to develop the Nyngan Scandium Project and is based on facts and findings contained in the EIS. The Development Consent follows an in-depth review of the EIS, the project plan, community impact studies, public EIS exhibition and commentary, and economic viability, and involved more than 12 specialized governmental agencies and groups.

 

Mining Lease:

 

During July 2019, EMC Australia received notice of approval for its most current mining lease (ML) application. The ML (ML 1792) overlays select areas previously covered by exploration licenses and represents the final major development approval required from the NSW Government to begin construction on the project. The ML 1792 grant is issued for a period of 21 years and is based on the development plans and intent submitted in the ML application. The ML can be modified by NSW regulatory agencies, as requested by EMC Australia over time, to reflect changing operating conditions.

 

In addition to these two key governmental approvals, other required licenses and permits must be acquired but are considered routine and require only compliance with fixed standards and objective measurements. These remaining approvals include submittal of numerous plans and reports supporting compliance with the Development Consent and Mining Lease. In addition, the following water, roads, dam and electrical access reviews and arrangements must be finalized:

 

●

Water Supply Works and Use Approval and Water Access License,

●

State and local approval for construction of the intersection of the Site Access Road and Gilgai Road,

●

An approval from the NSW Dams Safety Committee for the design and construction of the Residue Storage Facility, and

●

A high voltage connection agreement with Essential Energy.

 

The 2019 ML 1792 grant covers 810 acres (354 hectares) of surface area fully owned by the Company, an area adequate to construct and operate a scandium mine of a scale outlined in the definitive Feasibility Study. The Company had originally filed a mining lease application (MLA 531) covering an area of 874 hectares, which was granted in 2017 as a mining lease (ML 1763), and later ruled invalid. At that time, it was unknown, to both the Department and the Company, that a local landowner had filed a prior, timely and valid objection to the granting of that mining lease. The reduction in area between the initial 2017 ML 1763 and the replacement 2019 ML 1792 represented acreage protested in an “Agricultural Land” objection lodged by a local landowner. The landowner holds freehold surface ownership over a portion of the original grant that was previously covered by the 2017 ML 1763.

 

 

On September 10, 2020, the Company announced receipt of a final determination letter from the Deputy Secretary, Department of Regional NSW, Division of Mining, Exploration and Geoscience resolving the outstanding objection filed by the landowner in 2016.

 

Written advice from the Department to the Company makes clear that all required independent investigative processes, and all affected party comment periods, were completed, and the Department’s decision in this dispute matter is final. There are further state courts of appeal available to the landowner, but the facts supporting this final decision are confirmed by the NSW Department of Primary Industry and follow governing law.

 

This Final Determination from the NSW Government will again allow all measured and indicated resource included in the Nyngan Scandium Project DFS to be reinstated in a new mining lease grant, which required the filing of a new mine lease application in Q3 2022.

 

Honeybugle Scandium Property (NSW, Australia)

 

On April 2, 2014, the Company announced that it had secured a 100% interest in an exploration license (EL 7977) covering 34.7 square kilometers in New South Wales, Australia. The license area we call the ‘Honeybugle Scandium Property’ is located approximately 24 kilometers west-southwest from the Company’s Nyngan Scandium Project and approximately 36 kilometers southwest from the town of Nyngan, NSW. The application to renew the exploration license for a further six years was approved in November 2022.

 

Exploration rights for the Honeybugle Scandium Property include certain minimum expenditure requirements. The Company intends to fulfill those minimum expenditure requirements and executed a new drilling program in the first quarter of 2023.

 

Honeybugle Drill Results

 

The Honeybugle drill program was completed in the first quarter of 2023. The drill program found Scandium enriched laterite formation defined as the Woodlong prospect within the Honeybugle Exploration Licence 7977 area, where 32 vertical air core holes were drilled during first quarter 2023 in an approximately 300m x 400m area.

 

The laterite mineralization, consisting of both hematite and limonite, lies less than 2 meters below the surface. The laterite zone appears to thicken to both the west and south. Additional metallurgical testing is required on the saprolite mineralization to determine suitability for potential economic extraction.

 

Downstream Scandium Products

 

In February 2011, we announced the results of a series of laboratory-scale tests investigating the production of aluminum-scandium master alloys directly from aluminum oxide and scandium oxide feed materials. The overall objective of this research was to demonstrate and commercialize the production of aluminum-scandium master alloy using impure scandium oxide as the scandium source, potentially significantly improving the economics of aluminum-scandium master alloy production. In October 2019, the Company was granted Patent No. 10450634, titled “Scandium-Containing Master Alloys And Method For Making The Same.”

 

During the 2015-2017 timeframe, we continued our own internal laboratory-scale investigations into the production of aluminum-scandium master alloys, furthering our understanding of commercial processes, and achievable recoveries. We also advanced our abilities to make a commercial-grade 2% scandium master alloy product.

 

 

On March 2, 2017, we announced the signing of a Memorandum of Understanding ("MOU") with Weston Aluminium Pty Ltd. ("Weston") of Chatswood, NSW, Australia. The MOU defines a cooperative commercial alliance to jointly develop the capability to manufacture aluminum-scandium master alloy. The intended outcome of this alliance will be to develop the capability to offer Nyngan Scandium Project aluminum alloy customers scandium in form of Al-Sc master alloy, should customers prefer that product form.

 

The MOU outlines steps to jointly establish the manufacturing parameters, metallurgical processes, and capital requirements to convert Nyngan Scandium Project scandium product into Master Alloy, at Weston's existing production site in NSW. The MOU does not include a binding contract with commercial terms at this stage, although the intent is to pursue the necessary technical elements to arrive at a commercial contract for conversion of scandium oxide to master alloy, and to do so prior to first mine production from the Nyngan Scandium Project.

 

On March 5, 2018, the Company announced that it had initiated a small scale pilot program (4kg scale) at the Alcereco Inc. metallurgical research facilities in Kingston, Ontario, to confirm and refine previous lab-scale work on the manufacture of aluminum-scandium 2% master alloy (MA). The program advanced the process understanding for commercial scale upgrade of Nyngan scandium oxide product to master alloy product.

 

The 2018 pilot program consisted of 5 separate trials on two MA product types, production of MA in various forms, and dross analysis to ascertain scandium recoveries to product. The mass of master alloy and product variants produced in the program totaled approximately 20kg and was completed in December of 2018. The results of the program included the successful production of 2% grade MA, with recoveries of scandium to product of 85%.

 

A second phase of the small-scale pilot program was initiated in the first half of 2019, again at 4kg scale, building on the work done in phase I. The results of this second program included successful production of 2% grade MA, with improvements in form of rapid kinetics, and recoveries of scandium to product of +90%.

 

On March 5, 2018, the Company also announced that it filed for patent protection on certain process refinements for master alloy manufacture that it believes are novel methods, and also on certain product variants that it believes represent novel forms of introducing scandium more directly into aluminum alloys. In April of 2021, the Company was granted Patent No. 10,988,830, titled “Scandium Master Alloy Production.”

 

Master Alloy Capability Demonstrated

 

On February 24, 2020, the Company announced the completion of a three year, three stage program to demonstrate the capability to manufacture aluminum-scandium master alloy (Al-Sc2%), from scandium oxide, using a patent pending melt process involving aluminothermic reactions.

 

This master alloy capability will allow the Company to offer scandium product from the Nyngan Scandium Project in a form that is used directly by aluminum alloy manufacturers globally, either major integrated manufacturers or smaller wrought or casting alloy consumers.

 

 

Research Highlights:

 

●

Program achieved full 2% target product quality requirement,

●

Sc recoveries from oxide exceeded target, demonstrated in final tests,

●

The microstructure and metal quality meet major alloy producers’ specifications,

●

Rapid kinetics achieved, important for commercial viability,

●

Individual testing batches done at 4kg scale, and

●

Successful program testing forms a basis for a larger scale demonstration facility, supporting large scale samples required for industrial aluminum alloy trials.

 

 

Focus on Aluminum Alloy Applications for Scandium Products

 

Our focus is on the use of scandium as an alloying ingredient in aluminum-based products. The specific scandium product forms we intend to sell from the Nyngan project include both scandium oxide (Sc₂O₃) and aluminum-scandium master alloys (Al-Sc 2%).

 

Scandium as an alloying agent in aluminum allows for aluminum metal products that are much stronger, more easily weldable and exhibit improved performance at higher temperatures than current aluminum-based materials. This means lighter structures, lower manufacturing costs and improved performance in areas that aluminum alloys do not currently compete.

 

Use Of Scandium In Lithium-Ion Batteries

 

On September 24, 2020, the Company announced the filing of a provisional patent application with the US Patent Office seeking patent rights on various applications of scandium in lithium-ion batteries. The patent application covers a number of scandium enhancements, including doping potential for both anodes and cathodes, and for solid electrolytes.

 

Patent Application Highlights:

 

●

US Patent Application filed for use of scandium in lithium-ion battery applications.

●

Scandium doping applications are explained for anodes, cathodes and electrolytes.

●

Scandium offers conductivity advantages as a dopant, over other options, and

●

Scandium in other aluminum components offers numerous property improvements, including conductivity, strength and corrosion resistance.

 

Patent Application Discussion:

 

Rechargeable lithium-ion batteries (LIBs) are a staple of everyday life. The search for improved performance through design and materials advances is intense today. Considerable effort is being expended in developing next-generation materials for LIBs that will make batteries safer, lighter, more durable, faster to charge, more powerful, and more cost-effective. A sampling of some these efforts follows:

 

●

Minimizing or removing cobalt from cathode materials, based on cost, supply and geographic sourcing issues.

●

Improving the durability of liquid electrolytes with dopants, or substitution with safer and higher performing liquid or solid electrolyte systems.

●

Designing for higher voltage potential by utilizing different anode or cathode materials.

●

Determining combinations of metals that can better withstand harsh internal conditions.

 

Scandium, along with other specialty metals, has a clear role to play in each of these areas.

 

One particularly promising area for scandium contributions is in a lithium nickel manganese oxide (LNMO) battery. The cathode in this design substitutes manganese for cobalt and supports a higher nickel content as well. The substitution then delivers higher working potentials (voltage), higher energy densities, and faster charge/discharge rates, all of which offer the promise of improved battery performance.

 

 

Delivering on that promise requires a number of improvements, including employing a dopant for stabilization of the manganese in the LNMO cathode, potential stabilization of lithium titanate (LTO) anode materials as well, and use of dopants to improve the conductivity of both these anode and cathode materials. Conventional liquid electrolytes may see improved function and longevity with the improved cathode and anode conductivity. Scandium represents a suitable and effective dopant in each of these applications.

 

Solid state electrolytes (SSEs) represent another potential break-through improvement in LIBs. They will handle higher voltages, higher temperatures, greater power densities, are potentially easier to package, and are considered safer in use. Scandium represents a suitable and effective dopant in these applications, analogous to the use of scandium to stabilize solid zirconia electrolytes in solid oxide fuel cells. Recently technical papers (available upon request) covering the use of Lithium Super Ion Conductors (LiSICON) for SSEs have indicated that primary compounds containing scandium, such as Li₃Sc₂(PO₄)₃, LiScP₂O₇ and Li₃Sc(BO₃)₂, LiScO₂ as well as certain doped compounds such as Li_1.33ScSi_0.33P_1.67O₇, Li_3.375Mg_0.375Sc_0.625(BO₃)₂, Li_1.5Al_0.33Sc_0.17Ge_1.5(PO₄)₃, etc. can provide desirable crystal structural frameworks for solid state electrolytes. Non-oxide LiSICON fast conductors have also been identified recently, such as some lithium cryolite types: Li₃ScCl₆, as well as its fluoride counterpart Li₃ScF₆.

 

Lithium-ion batteries employ aluminum in a number of areas, specifically in cathode structure, current connectors, and in general battery structure. Aluminum-scandium alloys represent an enhanced aluminum alloy option, based on their combination of conductivity and strength.

 

The intent of this SCY patent filing was to advise the battery industry that scandium is a prospective dopant choice for enhanced performance of LIBs, both under existing design parameters and in particular for next-generation LNMO batteries. We want to ensure that battery research and design groups consider scandium additions, amongst their various materials choices, as they race to build a better lithium-ion battery.

 

 

Operating results - Revenues and Expenses

 

The Company’s results on a year-to-date March 31, 2024 basis reflect lower operating costs when compared to Q1, 2023. Cash expenditures were $75,546 lower due to lower exploration costs, professional fees, general and administrative costs and salaries.

 

Summary of quarterly results

 

A summary of the Company’s quarterly results is shown below at Table 1.

 

 

Table 1. Quarterly Results Summary (US$)

 

		2024				2023																2022
		Q1				Q4				Q3				Q2				Q1				Q4				Q3				Q2
Net Sales			-				-				-				-				-				-				-				-
Net Income (Loss) attributable to Scandium Mining Corp.			(151,196	)			(133,732	)			74,732				(129,756	)			236,000				228,371				70,701				28,578
Basic and diluted Net Income (Loss) per share attributable to Scandium Mining Corp.			(0.00	)			(0.00	)			0.00				(0.00	)			0.00				0.00				0.00				0.00

 

 

Results of Operations for the three months ended March 31, 2024

 

The net loss for the quarter was $151,196, a decrease of $387,196 from a net profit of $236,000 in the same quarter of the prior year. Details of the individual items contributing to the net decrease are set out below at Table 2:

 

Table 2. Variance Analysis for Net Loss

 

Q1 2024 vs. Q1 2023 – Variance Analysis
Item		Variance Favourable / (Unfavourable)			Explanation
Loss on derivative liability		$	(482,874	)	Warrants issued in Q2 2022 are in Canadian funds. The value of the warrants are recalculated based on Black-Scholes calculation at the end of the quarter. As the exchange rate with the Canadian dollar fluctuates, and the value of the warrants are recalculated based on current share price, a gain or loss on this is recorded in the financial statements. In Q1 2024 a loss was calculated. This is a non-cash item.
Travel		$	3,737		In Q1 2023, management visited the property and legal counsel in Australia. No such expenditures were incurred in Q1 2024.
Professional fees		$	6,322		Legal fees were lower in Q1 2024 due to less activity when compared to Q1 of 2023.
General and administrative		$	12,312		With the continuing focus on reducing costs, the Company incurred less fees for items included in this category.
Foreign exchange		$	18,288		The Canadian dollar strengthened in the Q1 2024 against the US$ resulting in this favorable variance when compared to Q1 2023 when the opposite occurred.
Exploration		$	21,741		In Q1 2023 a drilling program was initiated at Honeybugle. This resulted in higher costs when compared to Q1 2024 when very little activity took place.
Salaries and benefits		$	33,171		In Q1 2023, stock options were still being vested which resulted in a charge of $26,949 while in Q1 2024 there were no charges for the expensing of stock options. Also, management salaries were slightly reduced in Q1 2024 when compared to the corresponding quarter in 2023.

 

 

Cash flow discussion for the three-month period ended March 31, 2024, compared to March 31, 2023

 

The cash outflow for operating activities was $113,658, a decrease of $193,910 (March 31, 2023 – $307,568), due mainly to payment of accrued salaries in Q1 2023.

 

Financial Position

 

Cash

 

The Company’s cash position decreased during the three-month period by $113,658 to $908,298 (December 31, 2023 - $1,021,956) due mainly to payments of operating costs.

 

Prepaid expenses and receivables

 

Prepaid expenses and accounts receivable decreased by $12,426 to $27,785 during the three-month period due to reduction in prepaids (December 31, 2023 - $40,211).

 

Mineral interests

 

Mineral interests remained the same at $704,053.

 

Accounts payable, accrued liabilities and accounts payable with related parties

 

Current liabilities have increased by $24,867 to $374,126 (December 2023– $349,259) due to the warrant derivative liability being increased. Excluding the change in the derivative liability, there was an overall decrease of $18,757 for accounts payable, accrued liabilities and accounts payable with related parties.

 

Capital Stock

 

Capital stock remained at $111,144,603 (December 31, 2023 - $111,144,603).

 

Additional paid-in capital remained at $7,046,065 (December 31, 2023 - $7,019,116).

 

 

Liquidity and Capital Resources

 

At March 31, 2024, the Company had a working capital of $561,957 including cash of $908,298, as compared to a working capital of $712,908 including cash of $1,21,956 at December 31, 2023.

 

At March 31, 2024, the Company had a total of 40,015,000 stock options exercisable between C$0.035 and C$0.18 that have the potential upon exercise to generate a total of C$3,805,250 in cash over the next four and a three fourths years. There is no assurance that these securities will be exercised. At March 31, 2024, the Company had a total of 37,803,218 share purchase warrants exercisable at C$0.1075 that have the potential upon exercise to generate a total of C$4,063,846 in cash over the next four and a quarter years. The Company’s continued development is contingent upon its ability to raise sufficient financing both in the short and long term. There are no guarantees that additional sources of funding will be available to the Company; however, management is committed to pursuing all possible sources of financing in order to execute its business plan. The Company continues its cost control measures to conserve cash to meet its operational obligations.

 

Outstanding share data

 

At the date of this report, the Company has 355,860,813 issued and outstanding common shares, 37,803,218 purchase warrants currently outstanding at an exercise price of C$0.1075 and 40,015,000 stock options currently outstanding at a weighted average exercise price of C$0.10.

 

Off-balance sheet arrangements

 

At March 31, 2024, the Company had no material off-balance sheet arrangements such as guarantee contracts, contingent interest in assets transferred to an entity, derivative instruments obligations or any obligations that trigger financing, liquidity, market or credit risk to the Company.

 

Transactions with related parties

 

During the three months ended March 31, 2024, the Company expensed $Nil for stock-based compensation for stock options issued to Company directors. During the three months ended March 31, 2023, the Company expensed $24,585 for stock options issued to Company directors.

 

As at March 31, 2024, the Company owed $4,884 to an officer of the Company. (December 31, 2023 - $5,104)

 

Proposed Transactions

 

There are no proposed transactions outstanding other than as disclosed.

 

Critical Accounting Estimates

 

The preparation of financial statements in conformity with generally accepted accounting policies requires management of the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. These estimates are based on past experience, industry trends and known commitments and events. By their nature, these estimates are subject to measurement uncertainty and the effects on the financial statements of changes in such estimates in future periods could be significant. Actual results will likely differ from those estimates.

 

 

Stock-based compensation

 

The Company uses the Black-Scholes option pricing model to calculate the fair value of stock options and compensatory warrants granted. This model is subject to various assumptions. The assumptions the Company makes will likely change from time to time. At the time the fair value is determined, the methodology the Company uses is based on historical information, as well as anticipated future events. The assumptions with the greatest impact on fair value are those for estimated stock volatility and for the expected life of the instrument.

 

Future income taxes

 

The Company accounts for tax consequences of the differences in the carrying amounts of assets and liabilities and their tax bases using tax rates expected to apply when these temporary differences are expected to be settled. When the future realization of income tax assets does not meet the test of being more likely than not to occur, a valuation allowance in the amount of the potential future benefit is taken and no future income tax asset is recognized. The Company has taken a valuation allowance against all such potential tax assets.

 

Mineral properties and exploration and development costs

 

The Company capitalizes the costs of acquiring mineral rights at the date of acquisition. After acquisition, various factors can affect the recoverability of the capitalized costs. The Company’s recoverability evaluation of our mineral properties and equipment is based on market conditions for minerals, underlying mineral resources associated with the assets and future costs that may be required for ultimate realization through mining operations or by sale. The Company is in an industry that is exposed to a number of risks and uncertainties, including exploration risk, development risk, commodity price risk, operating risk, ownership and political risk, funding and currency risk, as well as environmental risk. Bearing these risks in mind, the Company has assumed recent world commodity prices will be achievable. The Company has considered the mineral resource reports by independent engineers on the Nyngan Scandium Project in considering the recoverability of the carrying costs of the mineral properties. All of these assumptions are potentially subject to change, out of our control, however such changes are not determinable. Accordingly, there is always the potential for a material adjustment to the value assigned to mineral properties and equipment.

 

Recent Accounting Pronouncements

 

Accounting Standards Update 2023-07 – Segment Reporting (Topic 280). This update is to improve the disclosures about a public entity’s reportable segments through enhanced disclosures about significant segment expenses and is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. The Company is reviewing this standard but anticipates little impact on its financial statements.

 

Accounting Standards Update 2023-09 – Income Taxes (Topic 740). This update is to enhance the transparency and decision usefulness of income tax disclosures for fiscal years beginning after December 15, 2024. The Company is reviewing this standard to determine the impact on its financial statements.

 

Financial instruments and other risks

 

The Company’s financial instruments consist of cash, receivables, accounts payable, accounts payable with related parties, accrued liabilities and promissory notes payable. It is management's opinion that the Company is not exposed to significant interest, currency or credit risks arising from its financial instruments. The fair values of these financial instruments approximate their carrying values unless otherwise noted. The Company has its cash primarily in three commercial banks: (i) one in Vancouver, British Columbia, Canada, (ii) one in Mackay, Queensland, Australia, and (iii) one in Chicago, Illinois, United States.

 

 

Information Regarding Forward-Looking Statements

 

This Management’s Discussion and Analysis of Financial Condition and Results of Operations contain certain forward-looking statements. Forward-looking statements include but are not limited to those with respect to the prices of metals, the estimation of mineral resources and reserves, the realization of mineral reserve estimates, the timing and amount of estimated future production, costs of production, capital expenditures, costs and timing of the development of new deposits, success of exploration activities, permitting time lines, currency fluctuations, requirements for additional capital, government regulation of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage and the timing and possible outcome of pending litigation. In certain cases, forward-looking statements can be identified by the use of words such as “plans”, “expects” or “does not expect”, “is expected”, “estimates”, “intends”, “anticipates” or “does not anticipate” or “believes” or variations of such words and phrases, or statements that certain actions, events or results “may”, “could”, “would”, or “will” be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance, or achievements of Scandium International to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such risks and uncertainties include, among others, the actual results of current exploration activities, conclusions or economic evaluations, changes in project parameters as plans continue to be refined, possible variations in grade and or recovery rates, failure of plant, equipment or processes to operate as anticipated, accidents, labor disputes or other risks of the mining industry, delays in obtaining government approvals or financing or incompletion of development or construction activities, risks relating to the integration of acquisitions, to international operations, and to the prices of metals and risks relating to the COVID-19 pandemic. While Scandium International has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Scandium International expressly disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

 

Item 3. Quantitative and Qualitative Disclosures About Market Risk

 

Not applicable.

 

Item 4. Controls and Procedures

 

Disclosure controls and procedures

 

The Company’s management is responsible for establishing and maintaining adequate disclosure controls and procedures. The Company’s management, including our principal executive officer and our principal financial officer, evaluated the effectiveness of our disclosure controls and procedures (as defined in Exchange Act Rule 13a-15(e)) as of the end of the period covered by this report. Based on that evaluation, the principal executive officer and principal financial officer concluded that as of the end of the period covered by this report, the Company has maintained effective disclosure controls and procedures in all material respects, including those necessary to ensure that information required to be disclosed in reports filed or submitted with the SEC (i) is recorded, processed, and reported within the time periods specified by the SEC, and (ii) is accumulated and communicated to management, including the principal executive officer and principal financial officer, as appropriate to allow for timely decision regarding required disclosure.

 

Changes in Internal Control

 

There have been no changes in internal control over financial reporting that occurred during the last fiscal quarter that have materially affected, or are reasonably likely to materially affect, internal control over financial reporting.

 

 

PART II – OTHER INFORMATION

 

Item 1. Legal Proceedings

 

We are not aware of any material current, pending, or threatened litigation with respect to the Company.

 

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

 

Not applicable.

 

Item 3. Defaults Upon Senior Securities.

 

Not applicable.

 

Item 4. Mine Safety Disclosures

 

Not applicable.

 

Item 5. Other Information

 

Not applicable.

 

Item 6. Exhibits

 

31.1	Certification of the Principal Executive Officer, pursuant to Rule 13a-14(a) or 15d-14(a) of the U.S. Securities Exchange Act of 1934 (filed herewith)

 

31.2	Certification of the Principal Financial Officer, pursuant to Rule 13a-14(a) or 15d-14(a) of the U.S. Securities Exchange Act of 1934 (filed herewith)

 

32.1	Section 1350 Certification of the Principal Executive Officer (filed herewith)

 

32.2	Section 1350 Certification of the Principal Financial Officer (filed herewith)

 

101	Financial Statements from the Quarterly Report on Form 10-Q of the Company for the three months ended March 31, 2024, formatted in XBRL (filed herewith)

 

104	Cover Page Interactive Data File (embedded within the Inline XBRL and contained in Exhibit 101)

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

Date: May 8, 2024

	SCANDIUM INTERNATIONAL MINING CORP. (Registrant)
	By:	/s/ “Peter B. Evensen”
		Principal Executive Officer
	By:	/s/ “R. Christian Evensen”
		Principal Financial Officer

 

Exhibit 31.1

 

 

CERTIFICATION
PURSUANT TO RULE 13a-14(a) OR 15d-14(a)
OF THE U.S. SECURITIES EXCHANGE ACT OF 1934

 

I, Peter Evensen, certify that:

 

1.	I have reviewed this quarterly report on Form 10-Q for the fiscal quarter ended March 31, 2024, of Scandium International Mining Corp.
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.	The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 

	a)	designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which the annual report is being prepared;
	b)	designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
	c)	evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
	d)	disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect the registrant’s internal control over financial reporting;

 

5.	The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent function):

 

	a)	all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
	b)	any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s control over financial reporting.

 

Date:    May 15, 2024	By:	/s/ “Peter Evensen”
		Peter Evensen
		Principal Executive Officer

 

Exhibit 31.2

 

 

CERTIFICATION
PURSUANT TO RULE 13a-14(a) OR 15d-14(a)
OF THE U.S. SECURITIES EXCHANGE ACT OF 1934

 

 

I, Chris Evensen, certify that:

 

1.	I have reviewed this quarterly report on Form 10-Q for the fiscal quarter ended March 31, 2024, of Scandium International Mining Corp.
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.	The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 

	a)	designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which the annual report is being prepared;
	b)	designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
	c)	evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
	d)	disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect the registrant’s internal control over financial reporting;

 

5.	The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent function):

 

	a)	all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
	b)	any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s control over financial reporting.

 

 

Date:  May 15, 2024	By:	/s/ “R. Christian Evensen”
		Chris Evensen
		Principal Financial Officer

 

EXHIBIT 32.1

 

 

CERTIFICATION

PURSUANT TO 18 U.S.C. SECTION 1350

AND RULE 13a-14(b) OR RULE 15d-14(b)

OF THE U.S. SECURITIES EXCHANGE ACT OF 1934

 

In connection with the Quarterly Report of Scandium International Mining Corp. (the "Company") on Form 10-Q for the fiscal quarter ended March 31, 2024 (the "Report"), the undersigned, in the capacities and on the date indicated below, hereby certifies pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to his knowledge:

 

1.

The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

 

2.

The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

 

 

 

 

Dated: May 15, 2024	/s/ “Peter Evensen”
	Peter Evensen
	Principal Executive Officer

 

EXHIBIT 32.2

 

 

CERTIFICATION

PURSUANT TO 18 U.S.C. SECTION 1350

AND RULE 13a-14(b) OR RULE 15d-14(b)

OF THE U.S. SECURITIES EXCHANGE ACT OF 1934

 

In connection with the Quarterly Report of Scandium International Mining Corp. (the "Company") on Form 10-Q for the fiscal quarter ended March 31, 2024 (the "Report"), the undersigned, in the capacities and on the date indicated below, hereby certifies pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to his knowledge:

 

1.

The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

 

2.

The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

 

 

 

 

Dated:    May 15, 2024	/s/ “R. Christian Evensen”
	Chris Evensen
	Principal Financial Officer

 

v3.24.1.1.u2

Document And Entity Information - shares	3 Months Ended
	Mar. 31, 2024	May 08, 2024
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2024
Document Transition Report	false
Entity File Number	000-54416
Entity Registrant Name	SCANDIUM INTERNATIONAL MINING CORP.
Entity Incorporation, State or Country Code	CA
Entity Tax Identification Number	98-1009717
Entity Address, Address Line One	2011 Phaeton Lane
Entity Address, City or Town	Reno
Entity Address, State or Province	NV
Entity Address, Postal Zip Code	89523
City Area Code	775
Local Phone Number	355-9500
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding (in shares)		355,860,813
Entity Central Index Key	0001408146
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q1
Amendment Flag	false

v3.24.1.1.u2

Condensed Interim Consolidated Balance Sheets (Unaudited) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
ASSETS
Cash	$ 908,298	$ 1,021,956
Prepaid expenses and receivables	27,785	40,211
Total Current Assets	936,083	1,062,167
Reclamation bond (Note 3)	10,792	11,037
Mineral property interests (Note 3)	704,053
Total Assets	1,650,928	1,777,257
Current
Accounts payable and accrued liabilities	42,245	60,782
Total Liabilities	374,126	349,259
Shareholders’ Equity
Capital stock (Note 5) (Authorized: Unlimited number of common shares; Issued and outstanding: 355,860,813 (2023 – 355,860,813)	111,144,603	111,144,603
Treasury stock (Note 6) (1,033,333 common shares) (2023 – 1,033,333)	(1,264,194)	(1,264,194)
Additional paid in capital (Note 5)	7,306,631	7,306,631
Accumulated other comprehensive loss	(853,400)	(853,400)
Deficit	(115,056,838)	(114,905,642)
Total Shareholders’ Equity	1,276,802	1,427,998
Total Liabilities and Shareholders’ Equity	1,650,928	1,777,257
Warrant [Member]
Current
Derivative liability – warrants (Note 2 and 5)	326,997	283,373
Related Party [Member]
Current
Accounts payable with related parties (Note 4)	4,884	5,104
Equipment [Member]
ASSETS
Mineral property interests (Note 3)	$ 704,053	$ 704,053

v3.24.1.1.u2

Condensed Interim Consolidated Balance Sheets (Unaudited) (Parentheticals) - shares	3 Months Ended	12 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Common Stock, Shares Authorized, Unlimited [Fixed List]	Unlimited	Unlimited
Common Stock, Shares, Issued (in shares)	355,860,813	355,860,813
Common Stock, Shares, Outstanding (in shares)	355,860,813	355,860,813
Treasury Stock, Common, Shares (in shares)	1,033,333	1,033,333
Treasury Stock, Common, Shares (in shares)	1,033,333	1,033,333

v3.24.1.1.u2

Condensed Interim Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) - USD ($) $ / shares in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
EXPENSES
Exploration	$ 15,483	$ 37,224
General and administrative	17,439	29,751
Insurance	7,835	7,832
Professional fees	26,856	33,178
Salaries and benefits	34,952	68,123
Travel	0	3,737
Operating Expenses	(102,565)	(179,845)
Foreign exchange gain (loss)	(3,052)	(21,340)
Interest income	7,489	7,379
Unrealized gain (loss) on derivative liability – warrants (Note 5)	(53,068)	429,806
Income (loss) and comprehensive income (loss) for the period	$ (151,196)	$ 236,000
Basic and diluted income (loss) per common share (in dollars per share)	$ 0	$ 0
Weighted average number of common shares outstanding – basic and diluted (in shares)	355,860,813	355,860,813

v3.24.1.1.u2

Condensed Interim Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2024	Dec. 31, 2023	Jun. 30, 2023	Mar. 31, 2023
CASH FLOWS FROM OPERATING ACTIVITIES
Income (loss) for the period	$ (151,196)	$ (133,772)	$ (129,756)	$ 236,000
Items not affecting cash:
Stock-based compensation	0			26,949
Unrealized gain (loss) on derivative liability – warrants	53,068			(429,806)
Unrealized loss on foreign exchange	(9,199)			21,952
us-gaap_IncreaseDecreaseInAccountsPayableAndAccruedLiabilities	(18,757)			(159,972)
Decrease (increase) in prepaid expenses and receivables	12,426			(2,691)
Net Cash Provided by (Used in) Operating Activities	(113,658)			(307,568)
Change in cash during the period	(113,658)			(307,568)
Cash, beginning of period	1,021,956		$ 1,545,142	1,852,710
Cash, end of period	908,298	$ 1,021,956		1,545,142
Cash paid during the 3-month period for interest	0			0
Cash paid during the 3-month period for taxes	$ 0			$ 0

v3.24.1.1.u2

Condensed Interim Consolidated Statements of Changes in Shareholders' Equity (Deficiency) (Unaudited) - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Treasury Stock, Common [Member]	AOCI Attributable to Parent [Member]	Retained Earnings [Member]	Total
Balance (in shares) at Dec. 31, 2022	355,860,813
Balance at Dec. 31, 2022	$ 111,144,603	$ 7,019,116	$ (1,264,194)	$ (853,400)	$ (114,952,846)	$ 1,093,279
Stock-based compensation	0	26,949	0	0	0	26,949
Income (loss) for the period	$ 0	0	0	0	236,000	236,000
Balance (in shares) at Mar. 31, 2023	355,860,813
Balance at Mar. 31, 2023	$ 111,144,603	7,046,065	(1,264,194)	(853,400)	(114,716,846)	1,356,228
Stock-based compensation	0	21,684	0	0	0	21,684
Income (loss) for the period	$ 0	0	0	0	(129,756)	(129,756)
Balance (in shares) at Jun. 30, 2023	355,860,813
Balance at Jun. 30, 2023	$ 111,144,603	7,067,749	(1,264,194)	(853,400)	(114,846,602)	1,248,156
Stock-based compensation		10,906	0	0	0	10,906
Income (loss) for the period	$ 0	0	0	0	74,732	74,732
Balance (in shares) at Sep. 30, 2023	355,860,813
Balance at Sep. 30, 2023	$ 111,144,603	7,078,655	(1,264,194)	(853,400)	(114,771,870)	1,333,794
Stock-based compensation		227,976	0	0	0	227,976
Income (loss) for the period	$ 0	0	0	0	(133,772)	(133,772)
Balance (in shares) at Dec. 31, 2023	355,860,813
Balance at Dec. 31, 2023	$ 111,144,603	7,306,631	(1,264,194)	(853,400)	(114,905,642)	1,427,998
Income (loss) for the period	$ 0	0	0	0	(151,196)	(151,196)
Balance (in shares) at Mar. 31, 2024	355,860,813
Balance at Mar. 31, 2024	$ 111,144,603	$ 7,306,631	$ (1,264,194)	$ (853,400)	$ (115,056,838)	$ 1,276,802

v3.24.1.1.u2

Note 1 - Nature and Continuance of Operations	3 Months Ended
	Mar. 31, 2024
Notes to Financial Statements
Nature of Operations [Text Block]	1. NATURE AND CONTINUANCE OF OPERATIONS   Scandium International Mining Corp. (“The Company”)is a specialty metals and alloys company focusing on scandium and other specialty metals.   The Company was incorporated under the laws of the Province of British Columbia, Canada in 2006. The Company currently trades on the Toronto Stock Exchange under the symbol “SCY”.   The Company’s focus is on the exploration and evaluation of its specialty metals assets, specifically the Nyngan scandium deposit located in New South Wales, Australia. The Company is an exploration stage company and anticipates incurring significant additional expenditures prior to production at any and all of its properties.   These condensed interim consolidated financial statements have been prepared on a going concern basis that contemplates the realization of assets and discharge of liabilities at their carrying values in the normal course of business for the foreseeable future. These financial statements do not reflect any adjustments that may be necessary if the Company is unable to continue as a going concern.   The Company currently earns no operating revenues and will require additional capital in order to advance the Nyngan property. The Company’s ability to continue as a going concern is uncertain and is dependent upon the generation of profits from mineral properties, obtaining additional financing and maintaining continued support from its shareholders and creditors. These are material uncertainties that raise substantial doubt about the Company’s ability to continue as a going concern. In the event that additional financial support is not received, or operating profits are not generated, the carrying values of the Company’s assets may be adversely affected.   The political upheavals in various countries have caused significant volatility in commodity prices. While these effects are expected to be temporary, the duration of the business disruptions internationally and related financial impact cannot be reasonably estimated at this time.

v3.24.1.1.u2

Note 2 - Basis of Presentation	3 Months Ended
	Mar. 31, 2024
Notes to Financial Statements
Business Description and Basis of Presentation [Text Block]	2. BASIS OF PRESENTATION   Basis of presentation   The accompanying unaudited condensed interim consolidated financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”). The condensed interim consolidated financial statements include the consolidated accounts of the Company and its wholly owned subsidiaries with all significant intercompany transactions eliminated.  In the opinion of management, all adjustments necessary for a fair statement of the consolidated financial position, results of operations and cash flows for the interim periods have been made. Certain information and footnote disclosures normally included in the consolidated financial statements prepared in accordance with generally accepted accounting principles of the United States of America (“US GAAP”) have been condensed or omitted pursuant to such SEC rules and regulations. These condensed interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2023 and with our Annual Report on Form 10-K filed with the SEC on April 1, 2024. Operating results for the three-month period ended March 31, 2024 may not necessarily be indicative of the results for the year ending December 31, 2024.   These unaudited condensed interim consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, EMC Metals USA Inc., Scandium International Mining Corp., Norway AS, SCY Exploration Finland Oy, and EMC Metals Australia Pty Ltd. (“EMC-A”).   Use of estimates   The preparation of unaudited condensed interim consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period. The Company regularly evaluates estimates and assumptions related to the deferred income tax asset valuations, asset impairment, stock-based compensation and loss contingencies. The Company bases its estimates and assumptions on current facts, historical experience, and various other factors that it believes to be reasonable under the circumstances. The actual results experienced by the Company may differ materially and adversely from the Company’s estimates. To the extent there are material differences between estimates and the actual results, future results of operations will be affected.   The Company considers itself to be an exploration stage company and will consider the transition to development stage after it receives funding to begin mine construction, and board approval.   Fair value of financial assets and liabilities   The Company measures the fair value of financial assets and liabilities based on US GAAP guidance which defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements.   The Company classifies financial assets and liabilities as held-for-trading, available-for-sale, held-to-maturity, loans and receivables or other financial liabilities depending on their nature. Financial assets and financial liabilities are recognized at fair value on their initial recognition, except for those arising from certain related party transactions which are accounted for at the transferor’s carrying amount or exchange amount.   Scandium International Mining Corp. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS March 31, 2024 Financial assets and liabilities classified as held-for-trading are measured at fair value, with gains and losses recognized in net income. Financial assets classified as held-to-maturity, loans and receivables, and financial liabilities other than those classified as held-for-trading are measured at amortized cost, using the effective interest method of amortization. Financial assets classified as available-for-sale are measured at fair value, with unrealized gains and losses being recognized as other comprehensive income until realized, or if an unrealized loss is considered other than temporary, the unrealized loss is recorded in income.   Financial instruments, including cash, receivables, reclamation bond, accounts payable and accrued liabilities, and accounts payable with related parties, are carried at amortized cost, which management believes approximates fair value due to the short-term nature of these instruments.   The Company had no leases in the quarter ending March 31, 2024 or 2023.   The following table presents information about the assets that are measured at fair value on a recurring basis as at March 31, 2024 and indicates the fair value hierarchy of the valuation techniques the Company utilized to determine such fair value. In general, fair values determined by Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets. Fair values determined by Level 2 inputs utilize data points that are observable such as quoted prices, interest rates and yield curves. Fair values determined by Level 3 inputs are unobservable data points for the asset or liability, and include situations where there is little, if any, market activity for the asset:       March 31, 2024     Quoted Prices in Active Markets (Level 1)     Significant Other Observable Inputs (Level 2)     Significant Unobservable Inputs (Level 3)   Cash   $ 902,298     $ 902,298     $ -     $ -   Derivative liability - warrants   $ (326,997 )   $ -     $ (326,997 )   $ -     Recently Adopted and Recently Issued Accounting Standards   There are no recently issued accounting standards updates that are currently expected to have a material impact on the Company.

v3.24.1.1.u2

Note 3 - Mineral Properties Interests	3 Months Ended
	Mar. 31, 2024
Notes to Financial Statements
Mineral Industries Disclosures [Text Block]	3. MINERAL PROPERTY INTERESTS   March 31, 2024   Scandium and other             Balance, March 31, 2024, December 31, 2023   $ 704,053     Title to mineral property interests involves certain inherent risks due to the difficulties of determining the validity of certain claims as well as the potential for problems arising from the frequently ambiguous conveyancing history characteristic of many mineral property interests. The Company has investigated title to all of its mineral property interests and, to the best of its knowledge, title to all of its properties is in good standing.   SCANDIUM PROPERTIES   Nyngan, New South Wales Property   The Company holds a 100% interest in the Nyngan property in New South Wales, Australia (“NSW”).   Royalties attached to the Nyngan property include a 0.7% royalty on gross mineral sales on the property, a 1.5% Net Profits Interest royalty to private parties involved with the early exploration on the property, and a 1.7% Net Smelter Returns royalty payable for 12   years after production commences. Another revenue royalty is payable to private interests of 0.2%, subject to a $370,000 cap.  A NSW minerals royalty will also be levied on the project, subject to negotiation, currently 4% on revenue.   Honeybugle property, Australia   The Company holds a 100% interest in the Honeybugle property.   Kiviniemi Scandium Property Finland   In December 2023, the Company decided not to renew an Exploration License for the Kiviniemi Scandium Property in central Finland from the Finnish regulatory body governing mineral exploration and mining in Finland. As at March 31, 2024 the Company has a reclamation bond of $10,792 (€10,000). (December 31, 2023 - $11,037 (€10,000)) that it is in the process of recovering.     Scandium International Mining Corp. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS March 31, 2024 (Expressed in US Dollars) (Unaudited)

v3.24.1.1.u2

Note 4 - Related Party Transactions	3 Months Ended
	Mar. 31, 2024
Notes to Financial Statements
Related Party Transactions Disclosure [Text Block]	4.   RELATED PARTY TRANSACTIONS   During the three months ended March 31, 2024, the Company expensed $Nil for stock-based compensation for stock options issued to Company directors.  During the three months ended March 31, 2023, the Company expensed $24,585 for stock options issued to Company directors.   As at March 31, 2024, the Company owed $4,884 to an officer of the Company (December 31, 2023 - $5,104)

v3.24.1.1.u2

Note 5 - Capital Stock and Additional Paid in Capital	3 Months Ended
	Mar. 31, 2024
Notes to Financial Statements
Equity [Text Block]	5. CAPITAL STOCK AND ADDITIONAL PAID IN CAPITAL   The holders of common stock are entitled to one vote for each share held. There are no restrictions that limit the Company’s ability to pay dividends on its common stock. The Company has not declared any dividends since incorporation. The Company’s common stock has no par value per common share.   During the three months ended March 31, 2024, and the year ended December 31, 2023, there were no share issuances pursuant to private placements.   Warrants   A summary of warrant activity for the quarter ended March 31, 2024, is as follows:       Number of warrants     Exercise price   Expiry date Outstanding December 31, 2023     37,803,218     CAD$ 0.1075   May 20 - June 14, 2027                     Outstanding March 31, 2024     37,803,218     CAD$ 0.1075       A fair value of the derivative liability of $1,781,779 was estimated on the date of the subscription using the Black-Scholes pricing model. A fair value of the derivative liability of $283,373 was estimated at December 31, 2023, using the Black-Scholes pricing model. For the quarter ended March 31, 2024, there was a non-cash gain on derivative liability – warrants of $53,068 and an unrealized foreign exchange loss of $9,443 resulting in a fair value as at March 31, 2024 of $326,997 with the following weighted average assumptions:       March 31, 2024     December 31, 2023   Exercise price   CAD$ 0.1075     CAD$ 0.1075   Stock price   CAD$ 0.025     CAD$ 0.025   Expected term (in years)     3.23       3.5   Expected dividend yield     -       -   Expected stock price volatility     114.98 %     100.02 % Risk-free interest rate     3.63 %     3.59 %   Stock Options   The Company established a stock option plan (the “Plan”) under which it is authorized to grant options to executive officers and directors, employees and consultants. The number of options granted under the Plan shall not exceed 10% of the shares outstanding. Under the Plan, the exercise period of the options may not exceed ten years from the date of grant and vesting is determined by the Board of Directors.      Scandium International Mining Corp. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS March 31, 2024 (Expressed in US Dollars) (Unaudited) Stock option transactions are summarized as follows:       Stock Options     Number     Weighted average exercise price in Canadian $                                 Outstanding, December 31, 2022     34,665,000       0.14 Granted     11,400,000       0.035 Expired     (6,050,000 )     0.22                 Outstanding, December 31, 2023     40,015,000     $ 0.10                 Outstanding, March 31, 2024     40,015,000     $ 0.10                 Number currently exercisable     40,015,000     $ 0.10   As at March 31, 2024, incentive stock options were outstanding as follows:       Number of Options Outstanding     Number of Options Exercisable     Exercise Price in Canadian $   Expiry Date                             Options                                 3,240,000       3,240,000       0.150   May 9, 2024*       50,000       50,000       0.130   June 24, 2024       7,450,000       7,450,000       0.065   March 19, 2025       100,000       100,000       0.075   May 22, 2025       5,900,000       5,900,000       0.140   November 13, 2025       6,175,000       6,175,000       0.180   May 23, 2026       5,700,000       5,700,000       0.090   June 24, 2027       11,400,000       11,400,000       0.350   November 14, 2028                                   40,015,000       40,015,000             * These options expired unexercised subsequent to March 31, 2024.   As at March 31, 2024 the Company’s outstanding and exercisable stock options have an aggregate intrinsic value of $Nil (December 31, 2023 - $Nil).

v3.24.1.1.u2

Note 6 - Treasury Stock	3 Months Ended
	Mar. 31, 2024
Notes to Financial Statements
Treasury Stock [Text Block]	6. TREASURY STOCK       Number     Amount                     Treasury shares, March 31, 2024, and December 31, 2023     1,033,333     $ 1,264,194                           1,033,333     $ 1,264,194     Treasury shares comprise shares of the Company which cannot be sold without the prior approval of the TSX.   Scandium International Mining Corp. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS March 31, 2024 (Expressed in US Dollars) (Unaudited)

v3.24.1.1.u2

Note 7 - Segmented Information	3 Months Ended
	Mar. 31, 2024
Notes to Financial Statements
Segment Reporting Disclosure [Text Block]	7. SEGMENTED INFORMATION   The Company’s mineral properties are located in Australia.  The Company’s capital assets’ geographic information is as follows:   March 31, 2024   Australia     Total                     Mineral property interests     704,053       704,053                         $ 704,053     $ 704,053     December 31, 2023   Australia     Total                     Mineral property interests     704,053       704,053                         $ 704,053     $ 704,053

v3.24.1.1.u2

Insider Trading Arrangements	3 Months Ended
	Mar. 31, 2024
Insider Trading Arr Line Items
Material Terms of Trading Arrangement [Text Block]	Item 5. Other Information   Not applicable.
Rule 10b5-1 Arrangement Adopted [Flag]	false
Rule 10b5-1 Arrangement Terminated [Flag]	false
Non-Rule 10b5-1 Arrangement Adopted [Flag]	false
Non-Rule 10b5-1 Arrangement Terminated [Flag]	false

v3.24.1.1.u2

Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2024
Accounting Policies [Abstract]
Basis of Accounting, Policy [Policy Text Block]	Basis of presentation   The accompanying unaudited condensed interim consolidated financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”). The condensed interim consolidated financial statements include the consolidated accounts of the Company and its wholly owned subsidiaries with all significant intercompany transactions eliminated.  In the opinion of management, all adjustments necessary for a fair statement of the consolidated financial position, results of operations and cash flows for the interim periods have been made. Certain information and footnote disclosures normally included in the consolidated financial statements prepared in accordance with generally accepted accounting principles of the United States of America (“US GAAP”) have been condensed or omitted pursuant to such SEC rules and regulations. These condensed interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2023 and with our Annual Report on Form 10-K filed with the SEC on April 1, 2024. Operating results for the three-month period ended March 31, 2024 may not necessarily be indicative of the results for the year ending December 31, 2024.   These unaudited condensed interim consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, EMC Metals USA Inc., Scandium International Mining Corp., Norway AS, SCY Exploration Finland Oy, and EMC Metals Australia Pty Ltd. (“EMC-A”).
Use of Estimates, Policy [Policy Text Block]	Use of estimates   The preparation of unaudited condensed interim consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period. The Company regularly evaluates estimates and assumptions related to the deferred income tax asset valuations, asset impairment, stock-based compensation and loss contingencies. The Company bases its estimates and assumptions on current facts, historical experience, and various other factors that it believes to be reasonable under the circumstances. The actual results experienced by the Company may differ materially and adversely from the Company’s estimates. To the extent there are material differences between estimates and the actual results, future results of operations will be affected.   The Company considers itself to be an exploration stage company and will consider the transition to development stage after it receives funding to begin mine construction, and board approval.
Fair Value Measurement, Policy [Policy Text Block]	Fair value of financial assets and liabilities   The Company measures the fair value of financial assets and liabilities based on US GAAP guidance which defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements.   The Company classifies financial assets and liabilities as held-for-trading, available-for-sale, held-to-maturity, loans and receivables or other financial liabilities depending on their nature. Financial assets and financial liabilities are recognized at fair value on their initial recognition, except for those arising from certain related party transactions which are accounted for at the transferor’s carrying amount or exchange amount.   Scandium International Mining Corp. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS March 31, 2024 Financial assets and liabilities classified as held-for-trading are measured at fair value, with gains and losses recognized in net income. Financial assets classified as held-to-maturity, loans and receivables, and financial liabilities other than those classified as held-for-trading are measured at amortized cost, using the effective interest method of amortization. Financial assets classified as available-for-sale are measured at fair value, with unrealized gains and losses being recognized as other comprehensive income until realized, or if an unrealized loss is considered other than temporary, the unrealized loss is recorded in income.   Financial instruments, including cash, receivables, reclamation bond, accounts payable and accrued liabilities, and accounts payable with related parties, are carried at amortized cost, which management believes approximates fair value due to the short-term nature of these instruments.   The Company had no leases in the quarter ending March 31, 2024 or 2023.   The following table presents information about the assets that are measured at fair value on a recurring basis as at March 31, 2024 and indicates the fair value hierarchy of the valuation techniques the Company utilized to determine such fair value. In general, fair values determined by Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets. Fair values determined by Level 2 inputs utilize data points that are observable such as quoted prices, interest rates and yield curves. Fair values determined by Level 3 inputs are unobservable data points for the asset or liability, and include situations where there is little, if any, market activity for the asset:       March 31, 2024     Quoted Prices in Active Markets (Level 1)     Significant Other Observable Inputs (Level 2)     Significant Unobservable Inputs (Level 3)   Cash   $ 902,298     $ 902,298     $ -     $ -   Derivative liability - warrants   $ (326,997 )   $ -     $ (326,997 )   $ -
New Accounting Pronouncements, Policy [Policy Text Block]	Recently Adopted and Recently Issued Accounting Standards   There are no recently issued accounting standards updates that are currently expected to have a material impact on the Company.

v3.24.1.1.u2

Note 2 - Basis of Presentation (Tables)	3 Months Ended
	Mar. 31, 2024
Notes Tables
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]	March 31, 2024     Quoted Prices in Active Markets (Level 1)     Significant Other Observable Inputs (Level 2)     Significant Unobservable Inputs (Level 3)   Cash   $ 902,298     $ 902,298     $ -     $ -   Derivative liability - warrants   $ (326,997 )   $ -     $ (326,997 )   $ -

v3.24.1.1.u2

Note 3 - Mineral Properties Interests (Tables)	3 Months Ended
	Mar. 31, 2024
Notes Tables
Mineral Interests [Table Text Block]	March 31, 2024   Scandium and other             Balance, March 31, 2024, December 31, 2023   $ 704,053

v3.24.1.1.u2

Note 5 - Capital Stock and Additional Paid in Capital (Tables)	3 Months Ended
	Mar. 31, 2024
Notes Tables
Schedule of Stockholders' Equity Note, Warrants or Rights [Table Text Block]	Number of warrants     Exercise price   Expiry date Outstanding December 31, 2023     37,803,218     CAD$ 0.1075   May 20 - June 14, 2027                     Outstanding March 31, 2024     37,803,218     CAD$ 0.1075
Share-Based Payment Arrangement, Option, Activity [Table Text Block]	Stock Options     Number     Weighted average exercise price in Canadian $                                 Outstanding, December 31, 2022     34,665,000       0.14 Granted     11,400,000       0.035 Expired     (6,050,000 )     0.22                 Outstanding, December 31, 2023     40,015,000     $ 0.10                 Outstanding, March 31, 2024     40,015,000     $ 0.10                 Number currently exercisable     40,015,000     $ 0.10
Share-Based Compensation Arrangements by Share-Based Payment Award, Options, Vested and Expected to Vest, Outstanding [Table Text Block]	Number of Options Outstanding     Number of Options Exercisable     Exercise Price in Canadian $   Expiry Date                             Options                                 3,240,000       3,240,000       0.150   May 9, 2024*       50,000       50,000       0.130   June 24, 2024       7,450,000       7,450,000       0.065   March 19, 2025       100,000       100,000       0.075   May 22, 2025       5,900,000       5,900,000       0.140   November 13, 2025       6,175,000       6,175,000       0.180   May 23, 2026       5,700,000       5,700,000       0.090   June 24, 2027       11,400,000       11,400,000       0.350   November 14, 2028                                   40,015,000       40,015,000
Derivative Financial Instruments, Liabilities [Member]
Notes Tables
Fair Value Measurement Inputs and Valuation Techniques [Table Text Block]	March 31, 2024     December 31, 2023   Exercise price   CAD$ 0.1075     CAD$ 0.1075   Stock price   CAD$ 0.025     CAD$ 0.025   Expected term (in years)     3.23       3.5   Expected dividend yield     -       -   Expected stock price volatility     114.98 %     100.02 % Risk-free interest rate     3.63 %     3.59 %

v3.24.1.1.u2

Note 6 - Treasury Stock (Tables)	3 Months Ended
	Mar. 31, 2024
Notes Tables
Class of Treasury Stock [Table Text Block]	Number     Amount                     Treasury shares, March 31, 2024, and December 31, 2023     1,033,333     $ 1,264,194                           1,033,333     $ 1,264,194

v3.24.1.1.u2

Note 7 - Segmented Information (Tables)	3 Months Ended
	Mar. 31, 2024
Notes Tables
Long-Lived Assets by Geographic Areas [Table Text Block]	March 31, 2024   Australia     Total                     Mineral property interests     704,053       704,053                         $ 704,053     $ 704,053   December 31, 2023   Australia     Total                     Mineral property interests     704,053       704,053                         $ 704,053     $ 704,053

v3.24.1.1.u2

Note 2 - Basis of Presentation - Fair Value Measurement inputs and valuation techniques (Details) - USD ($)	Mar. 31, 2024	Dec. 31, 2023	Jun. 30, 2022
Warrant [Member]
Derivative liabilities - warrants	$ 326,997	$ 283,373	$ 1,781,779
Fair Value, Recurring [Member] | Warrant [Member]
Derivative liabilities - warrants	(326,997)
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Warrant [Member]
Derivative liabilities - warrants	0
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Warrant [Member]
Derivative liabilities - warrants	(326,997)
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Warrant [Member]
Derivative liabilities - warrants	0
Cash [Member] | Fair Value, Recurring [Member]
Cash	902,298
Cash [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Cash	902,298
Cash [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Cash	0
Cash [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]
Cash	$ 0

v3.24.1.1.u2

Note 3 - Mineral Properties Interests (Details Textual)	3 Months Ended
	Mar. 31, 2024 USD ($)	Mar. 31, 2024 EUR (€)	Dec. 31, 2023 USD ($)	Dec. 31, 2023 CAD ($)
Regulatory Asset, Noncurrent	$ 10,792		$ 11,037
Nyngan Property [Member]
Royalty Percentage on Gross Mineral Sales	70.00%
Net Profits Interest Royalty Percentage	150.00%
Net Smelter Returns Royalty Percentage	170.00%
Revenue Royalty, Payable to Private Interest, Percentage	20.00%
Revenue Royalty, Payable to Private Interest, Cap	$ 370,000
Nsw Minerals Royalty, Percentage	400.00%
Nyngan Property [Member] | Scandium Properties [Member]
Subsidiary of Limited Liability Company or Limited Partnership, Ownership Interest	100.00%
Honeybugle Property [Member] | Scandium Properties [Member]
Subsidiary of Limited Liability Company or Limited Partnership, Ownership Interest	100.00%
Kiviniemi Scandium Property [Member] | Reclamation Bond [Member]
Regulatory Asset, Noncurrent	$ 10,792	€ 10,000	$ 11,037	$ 10,000

v3.24.1.1.u2

Note 3 - Mineral Property Interest - Schedule of Mineral Interest (Details)	Mar. 31, 2024 USD ($)
Balance, March 31, 2024, December 31, 2023	$ 704,053

v3.24.1.1.u2

Note 4 - Related Party Transactions (Details Textual) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Officer [Member]
Other Liabilities	$ 4,884		$ 5,104
Share-Based Payment Arrangement, Option [Member] | Director [Member]
Share-Based Payment Arrangement, Expense	$ 0	$ 24,585

v3.24.1.1.u2

Note 5 - Capital Stock and Additional Paid in Capital (Details Textual) $ / shares in Thousands	3 Months Ended
	Mar. 31, 2024 USD ($) $ / shares	Dec. 31, 2023 USD ($)	Jun. 30, 2022 USD ($)
Common Stock, Votes Per Share	1
Common Stock, Dividends, Per Share, Declared (in dollars per share) | $ / shares	$ 0
Common Stock, No Par Value (in dollars per share) | $ / shares	$ 0
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Intrinsic Value	$ 0	$ 0
Share-Based Payment Arrangement, Option [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Percentage of Outstanding Stock Maximum	10.00%
Share-Based Compensation Arrangement by Share-Based Payment Award, Expiration Period	10 years
Warrant [Member]
Derivative Liability	$ 326,997	$ 283,373	$ 1,781,779
Derivative, Gain on Derivative	53,068
Unrealized Foreign Currency Transaction Gain Losses Unrealized	$ 9,443

v3.24.1.1.u2

Note 5 - Capital Stock and Additional Paid in Capital - Summary of Warrants (Details) - Purchase Warrants [Member] - $ / shares	Mar. 31, 2024	Dec. 31, 2023
Outstanding, Warrants (in shares)	37,803,218	37,803,218
Exercise price, Warrants (in dollars per share)	$ 0.1075	$ 0.1075

v3.24.1.1.u2

Note 6 - Capital Stock and Additional Paid in Capital - Schedule of Derivative Liabilities at Fair Value. (Details)	Mar. 31, 2024	Dec. 31, 2022
Measurement Input, Exercise Price [Member]
Warrants and Rights Outstanding, Measurement Input	0.1075	0.1075
Measurement Input, Share Price [Member]
Warrants and Rights Outstanding, Measurement Input	0.025	0.025
Measurement Input, Expected Term [Member]
Warrants and Rights Outstanding, Measurement Input	3.23	3.5
Measurement Input, Expected Dividend Rate [Member]
Warrants and Rights Outstanding, Measurement Input	0	0
Measurement Input, Price Volatility [Member]
Warrants and Rights Outstanding, Measurement Input	114.98	100.02
Measurement Input, Risk Free Interest Rate [Member]
Warrants and Rights Outstanding, Measurement Input	3.63	3.59

v3.24.1.1.u2

Note 6 - Capital Stock and Additional Paid in Capital - Schedule of Stock Option Activity (Details) - $ / shares	12 Months Ended
	Dec. 31, 2023	Mar. 31, 2024
Outstanding (in shares)	34,665,000
Outstanding, weighted average exercise price (in dollars per share)	$ 0.14
Granted (in shares)	11,400,000
Granted, weighted average exercise price (in dollars per share)	$ 0.035
Expired (in shares)	(6,050,000)
Expired, weighted average exercise price (in dollars per share)	$ 0.22
Outstanding (in shares)	40,015,000
Outstanding, weighted average exercise price (in dollars per share)	$ 0.1
Number currently exercisable (in shares)		40,015,000
Number currently exercisable, weighted average exercise price (in dollars per share)		$ 0.1

v3.24.1.1.u2

Note 5 - Capital Stock and Additional Paid in Capital - Schedule of Stock Options Outstanding (Details) - $ / shares		3 Months Ended
		Mar. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Number of Options Outstanding (in shares)		40,015,000	40,015,000	34,665,000
Number of Options Exercisable (in shares)		40,015,000
Exercise Price (in dollars per share)		$ 0.1	$ 0.1	$ 0.14
Options Expiring May 9, 2024 [Member]
Number of Options Outstanding (in shares)	[1]	3,240,000
Number of Options Exercisable (in shares)	[1]	3,240,000
Exercise Price (in dollars per share)	[1]	$ 0.15
Expiry Date	[1]	May 09, 2024
Options Expiring June 24, 2024 [Member]
Number of Options Outstanding (in shares)		50,000
Number of Options Exercisable (in shares)		50,000
Exercise Price (in dollars per share)		$ 0.13
Expiry Date		Jun. 24, 2024
Options Expiring March 19, 2025 [Member]
Number of Options Outstanding (in shares)		7,450,000
Number of Options Exercisable (in shares)		7,450,000
Exercise Price (in dollars per share)		$ 0.065
Expiry Date		Mar. 19, 2025
Options Expiring May 22, 2025 [Member]
Number of Options Outstanding (in shares)		100,000
Number of Options Exercisable (in shares)		100,000
Exercise Price (in dollars per share)		$ 0.075
Expiry Date		May 22, 2025
Options Expiring November 13, 2025 [Member]
Number of Options Outstanding (in shares)		5,900,000
Number of Options Exercisable (in shares)		5,900,000
Exercise Price (in dollars per share)		$ 0.14
Expiry Date		Nov. 13, 2025
Options Expiring May 23, 2026 [Member]
Number of Options Outstanding (in shares)		6,175,000
Number of Options Exercisable (in shares)		6,175,000
Exercise Price (in dollars per share)		$ 0.18
Expiry Date		May 23, 2026
Options Expiring June 24, 2027 [Member]
Number of Options Outstanding (in shares)		5,700,000
Number of Options Exercisable (in shares)		5,700,000
Exercise Price (in dollars per share)		$ 0.09
Options Expiring November142028 [Member]
Number of Options Outstanding (in shares)		11,400,000
Number of Options Exercisable (in shares)		11,400,000
Exercise Price (in dollars per share)		$ 0.35
[1] These options expired unexercised subsequent to March 31, 2024.

v3.24.1.1.u2

Note 7 - Treasury Stock - Schedule of Treasury Stock (Details) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Treasury Stock, Common, Shares (in shares)	1,033,333	1,033,333
Treasury Value	$ 1,264,194	$ 1,264,194

v3.24.1.1.u2

Note 7 - Segmented Information - Capital Assets by Geographic Area (Details) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Mineral property interests	$ 704,053
Property, Plant and Equipment, Net, Including Mineral Rights, Total	704,053
AUSTRALIA
Mineral property interests	704,053	$ 704,053
Property, Plant and Equipment, Net, Including Mineral Rights, Total	$ 704,053	704,053
UNITED STATES
Mineral property interests		704,053
Property, Plant and Equipment, Net, Including Mineral Rights, Total		$ 704,053

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