PyroGenesis Canada Inc (CVE:PYR) (OTCQB:PYRNF) (FRA:8PY) announced Thursday that the first 5,000 TPY DROSRITE system successfully passed the Factory Acceptance Test (FAT) conducted by Drosrite International LLC (DI).
“The success of this FAT testing marks an important milestone for PyroGenesis and DI,” said P Peter Pascali, CEO of PyroGenesis, in a statement.
“Once again, we are proud to see the DROSRITE technology being adopted successfully, this time, for use in 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 for an extremely discerning end-user."
He added: “As one might expect, we have seen a significant increase in interest in our DROSRITE technology given that the DI contract, with its client, was awarded primarily based on the DROSRITE technology.”
The company said the testing was held at a DI supplier’s US manufacturing facility where the end-user evaluated the equipment during, and after, the assembly process.
The end-user verified that the 5,000 TPY DROSRITE system was manufactured and operated in accordance with, amongst other things, design specifications. Based on this successful testing, the end-user decided to forego performing an additional FAT test on the second 5,000 TPY DROSRITE system. Both systems are expected to be shipped from the US to the Middle East, within the next four weeks, and are expected to arrive about two months later.
Before shipping, PyroGenesis said it is expected to receive an additional some $2.6 million from DI (representing total receipt from DI to date of over $10 million under the previously disclosed plus-$25 million DROSRITE contract to deliver five 5,000 TPY DROSRITE Systems, plus two 10,000 TPY DROSRITE Systems).
Contact the author: firstname.lastname@example.org
Follow him on Twitter @PatrickMGraham