Scandium Canada Secures $6.9 Million Federal Support for Critical Minerals Project

Scandium Canada Ltd. has signed a non-refundable contribution agreement of up to $6,915,478 under Natural Resources Canada's Global Partnerships Initiative for the company's Crater Lake scandium and rare earth elements project in Quebec and its proprietary aluminum-scandium alloys. The agreement was announced at PDAC 2026 by Minister of Energy and Natural Resources Tim Hodgson and Scandium Canada CEO Guy Bourassa, marking a significant moment for the G7 Critical Minerals Production Alliance led by Canada.

The GPI contribution represents 69% of project costs and will be used to scale up the company's patent-pending processes for beneficiation, extraction, and purification of scandium and rare earth elements through mineral processing test work and by progressing to FEL-3 engineering standards. The project will complete detailed design and specifications while developing a comprehensive cost estimate and execution schedule, with additional applied research to optimize aluminum-scandium alloy products.

This federal support unlocks immediate value for the company's strategic partners through its Scandium+ division without waiting for the Crater Lake mine to reach full production. Following a Memorandum of Understanding signed in November 2025, Scandium Canada continues to advance integration of its proprietary scandium-modified AA535 and AA7075 alloys into Gränges Powder Metallurgy's product offering. GPM, a wholly owned subsidiary of global aluminum technology company Gränges Group, is a global supplier of spray-formed aluminum products and aluminum powders for additive manufacturing, with this collaboration representing a technological breakthrough in high-performance, scandium-enhanced alloys.

A second partner benefits directly from Scandium Canada's specialized metallurgical knowledge for recovering scandium from polymetallic deposits, addressing the challenge of separating and purifying scandium from co-occurring nickel and cobalt mineralization. This collaboration extends Canadian scientific expertise into international mining operations, creating value well ahead of Crater Lake's production timeline. A third partner represents a natural strategic fit as both organizations share a commitment to building resilient, non-Chinese supply chains for critical minerals, laying groundwork for deeper collaboration as the Crater Lake project matures.

"It is a privilege to be among the few Canadian companies selected under the GPI, a recognition that speaks directly to the strategic importance of Crater Lake as North America's largest primary source of scandium as well as our important developments of Al-Sc alloys amenable to 3D printing and advanced manufacturing," declared Bourassa. "NRCan's support is a crucial milestone that provides non-dilutive funding through 2028, allowing our team to focus entirely on execution." The CEO emphasized that with international partners, the company will accelerate Crater Lake development while advancing Scandium+ alloy commercialization efforts, demonstrating Canada's reliability as a world-class supplier of critical materials.

Minister Hodgson stated that "Canada and our partners are putting real capital behind the secure and sustainable critical mineral supply chains that our economies and defence industries rely on," adding that working with companies like Scandium Canada helps deliver needed minerals while creating prosperity and security for Canadians. The Global Partnerships Initiative is designed to support critical minerals project development in Canada, strengthening domestic supply chains and advancing Canada's position as a reliable supplier to global markets, particularly allied nations seeking to reduce dependency on foreign sources. Additional information about the company can be found at https://www.scandium-canada.com while disclosure documents are available at https://www.sedarplus.ca.