Scandium Canada Ltd. (TSX-V: SCD) provided an update on its alloy commercialization, Crater Lake drilling program, and third-quarter financial results, highlighting significant progress across its operations. The company reported promising preliminary results from its SC7075 aluminum-scandium welding wire trials and advancing commercial discussions with partners, while its balance sheet reached its strongest position in history with $11.6 million in cash.
The company's alloy strategy advanced on four fronts: promising preliminary results from its SC7075 Al-Sc welding wire for Wire Arc Additive Manufacturing (WAAM), expanding commercial opportunities with Granges Powder Metallurgy, advancing discussions with Alpomet on welding-wire applications, and the acquisition of Ferreol Technologies, now Scalium+ Inc., as a wholly owned subsidiary. Wire samples of the patent-pending modified SC7075 alloy were shipped to a collaborator for WAAM trials, and preliminary results are promising, demonstrating the ability to produce structures comparably to commercial wire without scandium. This application alone could generate demand of up to 30 tonnes per year of scandium oxide, a market segment that does not currently exist. Rods of the SC535 alloy also showed promise in high-temperature applications.
Work under the Memorandum of Understanding with Granges Powder Metallurgy is expanding, covering powders and plates, with commercial opportunities identified in energy and defence with European OEMs. Discussions with Alpomet on welding-wire applications are actively advancing, signaling industrial demand for qualified, weldable, high-strength aluminum wire. On June 29, 2026, the company closed the acquisition of Ferreol Technologies, now Scalium+ Inc., which brings an established Quebec City commercial team, active alloy clients, and a proven production workflow. One Scalium® alloy is already commercialized, and internal testing under controlled conditions showed strength results up to 45% higher than typical AA7075 aerospace aluminum.
Luc Duchesne, Ph.D., Chief Science Officer of Scalium+, commented: "Our preliminary results are promising: we have demonstrated that we can produce structures by WAAM with our SC7075 wire. Next, we aim to optimize deposition parameters, while our work with Granges and discussions with Alpomet continue to identify prototyping opportunities." Felix Lapointe, CEO of Scalium+, added: "Two weeks in, the priority is simple: keep serving our existing alloy clients while opening the order book to the alloys developed by Scandium Canada."
The company also filed its interim financial statements for the three-month and nine-month periods ended May 31, 2026, available on SEDAR+ and at scandium-canada.com/financial-reports/. As of May 31, 2026, cash stood at $11.6 million, a twenty-nine-fold increase from $0.4 million at August 31, 2025. Working capital reached $15.2 million, a $16.6 million swing from negative working capital. Total assets were $31.9 million and total equity $30.2 million, both more than double their levels from August 31, 2025. Total liabilities were reduced to $1.6 million, with all unsecured loans repaid in full. The expansion was funded by equity, including a $17.25 million bought deal completed in March 2026 with full exercise of the over-allotment option. Between September 1, 2025 and July 14, 2026, holders exercised 46.7 million warrants and 1.5 million stock options for gross proceeds of $2.96 million. An additional $1.5 million in government grants was receivable at quarter-end. Management believes the funds are sufficient to meet obligations for at least the next twelve months.
Guy Bourassa, CEO of Scandium Canada, stated: "At the midpoint of the field season, the Company is executing the plan presented to shareholders in April: the drill is turning at Crater Lake, our SC7075 wire is showing promising results for structures produced by WAAM, and our newly acquired Scalium+ subsidiary gives us a commercial team selling alloys today. With $11.6 million in cash and the strongest balance sheet in our history, we are funded for the catalysts ahead."
The 2026 diamond drilling campaign at the Crater Lake project in Nunavik, Quebec, is advancing on schedule under management of Laurentia Exploration. The program is primarily dedicated to collecting a representative metallurgical bulk sample of 8 to 10 tonnes throughout the defined resource, a key input for the metallurgical testwork supporting the future feasibility study. In parallel, WSP's environmental assessment work is proceeding, with field teams conducting fauna and flora inventories, fish habitat surveys, and hydrogeological and geochemical studies in support of the prefeasibility study. Field operations have been conducted without any reported injuries or operational incidents. The scientific and technical information has been reviewed and approved by Eric Kinnan, P.Geo., an independent Qualified Person as defined by National Instrument 43-101.
