PyroGenesis Canada Inc (CVE:PYR) (OTCQB:PYRNF) has received an additional payment of roughly C$457,000 (US$325,000) from its client, a US tunneling company, as part of a previously announced agreement to purchase plasma torches.
To date, the company has received more than C$1 million (US$725,000) from the anonymous client.
The agreement will see PyroGenesis develop and supply high-powered plasma torches designed specifically for tunneling applications. Plasma-based tools have more potential to drill through all forms of geologies with more flexibility in size diameter, the company said.
The agreement is able to proceed despite the ongoing coronavirus (COVID-19) pandemic, the company said.
“This is an ideal contract, given the current situation, where all the engineering work can be done remotely,” CEO Peter Pascali said in a statement. “This relationship is timely, given the current environment where investors are more focused on multiple secure revenue streams. It is important to note that this relationship was not born out of the current crisis and, as such, is expected to continue well after the pandemic is behind us.”
Once the deal is complete, the client will purchase exclusively from PyroGenesis, and the company will exclusively supply plasma torches and auxiliary equipment.
“Once again, this agreement underscores our plasma torch expertise, and we are pleased to be applying it to a very unique and significant opportunity,” Business Development Manager Alex Pascali said. “This highlights the fact that we not only sell plasma torches, but also provide the expertise required to develop cutting edge plasma-based applications. The company continues to increase revenues and reduce risk by diversifying its customer base with a standard product offering.”
Montreal-based PyroGenesis designs, manufactures and commercializes advanced plasma processes and products.
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Published at Tue, 21 Apr 2020 15:49:00 +0000-PyroGenesis Canada secures additional C$457K payment from US tunneling client