viewPyroGenesis Canada Inc.

PyroGenesis' $20M licensing deal takes effect after Saudi aluminum treatment deal gets okay

The agreement, set off by its client Drosrite International, will pay the PyroGenesis $6.4 million within two to four weeks

DROSRITE systems offer a more environmentally-friendly way to treat aluminum dross while maximizing the amount of metal recovered

PyroGenesis Canada Inc (CVE:PYR) (OTCMKTS:PYRNF) has received the final signature necessary to initiate a $20 million contract with Drosrite International LLC (DI), which the company says will pay it $6.4 million within two to four weeks. 

The deal, which the company first teased back in June, licenses PyroGenesis to manufacture and sell aluminum dross processing DROSRITE systems and technology to Saudi Arabia and other Middle Eastern countries. Aluminum dross is a byproduct of smelting, that, with treatment, can be recycled.

Under the terms of the agreement, DI will pay PyroGenesis approximately $20 million within the next 12 months, plus $2.5 million annually for the next two years. In addition, PyroGenesis will receive a variable amount — the company is targeting another $2.5 million — based on international benchmarks over the subsequent 18 years. 

PyroGenesis shares, which resumed trading at 2:45 pm ET after a three-day halt, jumped 13% to C$0.61 in Toronto and 14% to US$0.47 in New York.

READ: PyroGenesis adds two new faces to its board of directors

What triggered the agreement on Wednesday was an announcement from DI that its partner, Radian Oil & Gas Services Company, signed a deal to provide aluminum dross treatment for Ma’aden Aluminum.

When those companies put pen to paper, that set off DI’s deal with Montreal-based PyroGenesis to manufacture DROSRITE systems. 

“DROSRITE is clearly the product of choice for those with a need to treat their dross,” PyroGenesis CEO Peter Pascali said in a statement. “We are proud to see the DROSRITE technology being accepted by some of the leading primary smelters in the industry. We believe this news will have a profound effect in the marketplace, which will lead to many inquiries, and accelerate those discussions already taking place.”

Radian, the party treating the aluminum dross, is a private Saudia Arabaian company oil and gas company focused on helping its customers save energy and operate more efficiently.

Ma’aden is a multi-billion-dollar mining company, the largest in Saudi Arabia.

Contact Andrew Kessel at [email protected] 

Follow him on Twitter @andrew_kessel

Quick facts: PyroGenesis Canada Inc.

Price: - -

Market: TSX-V
Market Cap: -

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events


The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of PyroGenesis Canada Inc. named herein, including the promotion by the Company of PyroGenesis Canada Inc. in any Content on the Site, the Company...


PyroGenesis Canada posts quarterly revenue of more than C$8M, exceeding...

PyroGenesis Canada Inc (TSE:PYR) (OTCQB:PYRNF) (FRA:8PY) CEO Peter Pascali tells Proactive the Montreal-based group brought in third-quarter 2020 revenues of C$8.1 million, a 289% year-over-year increase, along with a 16-fold improvement in its net income to C$15.3 million. Pascali says the...

2 days ago

2 min read