PyroGenesis Canada Inc (CVE:PYR) (OTCMKTS:PYRNF) said on Thursday that it has received the second payment of roughly C$1.4 million from its client, waste management company Drosrite International LLC.
On March 24, PyroGenesis received the first payment of C$1.4 million which kicked 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.
“Due to an unprecedented number of inquiries received from investors, we decided to confirm receipt of the second payment of C$1.4 million,” said PyroGenesis CEO Peter Pascali in a statement.
READ: PyroGenesis secures first payment of $25M DROSRITE aluminum processing contract
“We would also like to confirm that additional payments are being processed as anticipated and that, as per Drosrite International’s press release dated January 27, work has already begun. I would also like to take this opportunity to further emphasize that in general, notwithstanding receipt of payments, revenues and expenses are based on percent completion and not receipt of payments.”
As previously disclosed, 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.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
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