PyroGenesis Announces Receipt of First Payment Towards $25M+ DROSRITE Contract
MONTREAL, March 24, 2020 (GLOBE NEWSWIRE) -- PyroGenesis Canada Inc. (http://www.pyrogenesis.com) (TSX-V: PYR) (OTCQB: PYRNF) (FRA: 8PY), a high-tech company, (the "Company", the “Corporation” or
"PyroGenesis") that designs, develops, manufactures and commercializes plasma atomized metal powder, plasma waste-to-energy systems and plasma torch products, is pleased to announce today that,
further to its press release dated February 26th, 2020, the Company has received the first payment of approx. $1.44M under the exclusivity contract with Drosrite International LLC (“DI” or the
In addition to the payment received today, PyroGenesis expects to receive further payments, the timing of which has been scheduled to match DI’s cash flow.
Please refer to DI press release1 dated March 23rd, 2020.
“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,” said Mr. P. Peter Pascali, President and CEO of PyroGenesis. “We are also happy to confirm that the supply chain is intact despite this pandemic. Once again, we are proud to see the
DROSRITE technology being adopted by one of the premier aluminum smelters in the world. It indeed validates PyroGenesis’ DROSRITE technology, as it has become the dross processing solution of
choice to a very credible end-user.”
As previously disclosed, and as part of this exclusive arrangement between DI and PyroGenesis, DI will pay PyroGenesis approximately, based on current exchange rates, $25M over the next 12 months
as well as approx. $3M per year (fixed) for the next two (2) years, together with a variable amount for the subsequent 18 years based on certain international benchmarks.
DI is a US based private company duly constituted and existing under the laws of the State of Delaware, providing state-of-the-art waste management technologies to the aluminum industry. DI is duly licensed by PyroGenesis to manufacture, market, sell and distribute DROSRITE systems and technology to the Kingdom of Saudi Arabia, and certain other countries in the Middle East, on an exclusive basis. All DROSRITE systems supplied by DI are manufactured in the USA.