PyroGenesis Canada Inc (CVE:PYR) (OTCMKTS:PYRNF) has received the first payment of roughly C$1.4 million from its client, waste management company Drosrite International LLC.
The payment kicks off a deal which 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.
PyroGenesis expects to receive C$25 million over the next twelve months in payments scheduled to match DI’s cash flow, on top of a C$3 million annual payment each of those years and a variable amount for the subsequent 18 years based on international benchmark.
“The receipt of this first payment marks an important milestone for PyroGenesis as it triggers the official beginning of the project between DI and their client, in terms of benchmarks and deadlines,” CEO Peter Pascali said in a statement. “We are also happy to confirm that the supply chain is intact despite this pandemic.”
The initial payment was triggered when DI received US$1 million from its own client, Radian Oil & Gas Services Company
“Once again, we are proud to see the DROSRITE technology being adopted by one of the premier aluminum smelters in the world,” Pascali said. “It indeed validates PyroGenesis’ DROSRITE technology, as it has become the dross processing solution of choice to a very credible end-user.”
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