In March, PyroGenesis received an initial payment of C$1.4 million, kicking off a deal that licenses the Montreal-based company to manufacture and sell aluminum dross processing DROSITE systems and technology to Saudi Arabia and other Middle Eastern countries. Aluminum dross is a byproduct of smelting, that, with treatment, can be recycled.
In a statement Thursday, CEO Peter Pascali confirmed the total payments received to date under the $25 million Drosite contract due to a “large number of inquiries” received from shareholders and investors.
“It should also be noted that an additional payment of over $2.5 million is expected in the next few weeks,” Pascali added.
“All these payments are being made based on previously agreed to milestones and all are being paid on time. In fact, none of our contracts have been materially affected by COVID-19 and are all progressing as expected.”
Under the terms of the deal, Drosite will pay PyroGenesis around C$25 million over the first 12 months as well as approximately C$3 million per year for the next two years, together with a variable amount for the subsequent 18 years based on certain international benchmarks.
The initial payment was triggered when Drosite International received C$1 million from its own client, Radian Oil & Gas Services Company.
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