- Entered into a pre-tolling agreement with a major aluminum smelter in the Middle East, the name of which remains confidential for competitive reasons
- Agreement outlines the next steps to enter into a final tolling arrangement, which includes a formal demonstration of the Company’s proprietary DROSRITETM System at the Client’s facility.
MONTREAL, Feb. 19, 2019 — PyroGenesis Canada Inc. (http://pyrogenesis.com) (TSX-V: PYR) (OTCQB: PYRNF) (FRA: 8PY), a TSX Venture 50® 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, announced today that the Company has entered into a pre-tolling agreement (the “Agreementâ€) with a major aluminum smelter (the “Clientâ€) in the Middle East, the name of which remains confidential for competitive reasons.
PyroGenesis’ DROSRITE™ system is a proven, salt-free, cost-effective, sustainable process for maximizing metal recovery from dross, a waste generated in the metallurgical industry. PyroGenesis’ patented process avoids costly loss of metal, while reducing a smelter’s carbon footprint and energy consumption, thus providing a high return on investment. The system has been designed to process and recover valuable metals such as aluminum, zinc and copper from dross. Of note, a tolling service arrangement is one in which a smelter provides dross to a third party to be processed for a fee either on or off site.
The Agreement outlines the next steps to enter into a final tolling
arrangement, which includes a formal demonstration of the Company’s
proprietary DROSRITETM System at the Client’s facility. This will
demonstrate to local authorities that DROSRITE™ can process the Client’s
dross in an environmentally friendly and cost-effective manner. The
trials are expected to further demonstrate that DROSRITE™ can be used to
recover aluminum from the Client’s dross without the addition or use of
fluxing salts, resulting in a non-hazardous residue which can then be
utilized by other industries, thereby closing the loop in dross
processing.
Prior to entering into this Agreement, the Client conducted its own
independent analysis and concluded that the DROSRITE™ technology should
have a significantly higher recovery rate than their current practices,
and embraced the fact that the DROSRITE™ System does not use salt and,
therefore, unlike other processes, does not produce hazardous salt-cakes
as a by-product.
Once demonstrated, the Agreement anticipates that the Client will
engage PyroGenesis to build, install, and operate a DROSRITE™ plant,
with the potential for additional Systems, to process their hot dross
on-site, recover and return the metallic aluminum to the Client, and
manage the resulting non-hazardous residue. The terms and conditions of
any eventual tolling agreement will be based on demonstration economics,
which is expected to be completed in Q2, 2019.
PyroGenesis’ DROSRITE™ tolling service has two forms of revenues: (i)
a traditional tolling fee per metric tonne of dross processed, which
ranges widely depending upon the region, and is typically up to US $450
per ton, and (ii) a bonus, which is based upon the increase in aluminum
recovery uniquely generated by PyroGenesis’ DROSRITE™ technology, and
which is typically between 10-20%.
PyroGenesis leverages DROSRITE™â€™s non-hazardous salt-free process to address increased environmental regulations.
“Not only is PyroGenesis’ DROSRITE™ technology game-changing in its
own right, as it operates on-site with increased aluminum recovery, but
at the same time it addresses the environmental issues associated with
dross, which are becoming critical for aluminum smelters around the
world, and particularly in the Middle East,†commented Mr. David
D’Aoust, Sales Manager – DROSRITE™ of PyroGenesis. “In nearly all the
Gulf Cooperation Council nations, the environmental authorities have
tightened their restrictions on dross management with the goal of
eliminating landfills with hazardous dross or residue by-products, such
as salt-cakes, which are produced by traditional dross processing
technologies. It is now imperative that dross be managed in an
environmentally friendly fashion, which speaks to the urgent need for
PyroGenesis’ DROSRITE™ technology to service the rapidly growing
aluminum industry. We are highly confident this will be a successful
demonstration, based on the outstanding results we have generated to
date.â€
The Client allows PyroGenesis to showcase DROSRITE™ to other potential customers in the region.
The Client also agreed to allow PyroGenesis to showcase the DROSRITE™
System to other local aluminum smelters who are also prospective
clients for the DROSRITE™ System, and who are similarly looking for
salt-free, environmentally friendly, solutions for the processing of
their dross.
“We are happy to have the opportunity to showcase the DROSRITE™
technology with the support and backing of this Client,†said Mr. P.
Peter Pascali, President and CEO of PyroGenesis. “I believe this
underscores the impact DROSRITE™ is having in the industry and,
additionally, the unique environmental benefits it provides.â€
DROSRITE™ demonstrates significant advantages over current
practices, and is becoming the high-tech alternative with additional
unique environmental benefits.
“PyroGenesis’ on-site DROSRITE™ tolling services address all of the
environmental concerns in dross management at its head,†said Mr. Pierre
Carabin, Chief Technology Officer and Chief Strategist of PyroGenesis.
“Existing technologies continue to propose salt-based processing
technologies, and address the resulting hazardous salt-slag wastes by
developing complex post processing, salt-slag washing technologies. This
results in an unwieldy three-step offering: (i) the smelter must cool
the dross and transport it off-site, losing valuable metal in the
process, (ii) the dross is then processed with a salt-based technology
producing hazardous and toxic salt-slag residues, and (iii) the now
highly contaminated salt-slag residues must be transported to a third
facility, which is specifically designed to wash the salt-slag and
process the material back into a non-hazardous material. By contrast,
PyroGenesis’ patented DROSRITE™ technology is a simple and
cost-effective one-step-solution with high return on capital for the
client. Specifically, hot-dross is processed on-site, at the smelter,
with zero hazardous salt-slag waste byproducts.â€
PyroGenesis, together with its Japanese partner, advance on multiple tolling opportunities.
Mr. P. Peter Pascali added, “In addition to this latest Agreement, we
are actively pursuing other tolling arrangements through our new,
multi-billion-dollar global partner headquartered in Japan, which we
announced in November, 2018. Our business development team, together
with our Japanese partner’s upper management, recently returned from our
first series of on-site customer visits, all of whom requested moving
forward to the next step. This contract, along with other discussions we
are having with various players worldwide, should enable us, together
with our Japanese partner, to provide a cookie-cutter offering, and
rapidly roll out our on-site tolling business worldwide.â€
About PyroGenesis Canada Inc.
PyroGenesis Canada Inc., a TSX Venture 50® high-tech company, is the
world leader in the design, development, manufacture and
commercialization of advanced plasma processes and products. We provide
engineering and manufacturing expertise, cutting-edge contract research,
as well as turnkey process equipment packages to the defense,
metallurgical, mining, advanced materials (including 3D printing), oil
& gas, and environmental industries. With a team of experienced
engineers, scientists and technicians working out of our Montreal office
and our 3,800 m2 manufacturing facility, PyroGenesis maintains its
competitive advantage by remaining at the forefront of technology
development and commercialization. Our core competencies allow
PyroGenesis to lead the way in providing innovative plasma torches,
plasma waste processes, high-temperature metallurgical processes, and
engineering services to the global marketplace. Our operations are ISO
9001:2015 certified, and have been since 1997. PyroGenesis is a
publicly-traded Canadian Corporation on the TSX Venture Exchange (Ticker
Symbol: PYR) and on the OTCQB Marketplace. For more information, please
visit www.pyrogenesis.com
This press release contains certain forward-looking statements,
including, without limitation, statements containing the words “may”,
“plan”, “will”, “estimate”, “continue”, “anticipate”, “intend”,
“expect”, “in the process” and other similar expressions which
constitute “forward- looking information” within the meaning of
applicable securities laws. Forward-looking statements reflect the
Corporation’s current expectation and assumptions and are subject to a
number of risks and uncertainties that could cause actual results to
differ materially from those anticipated. These forward-looking
statements involve risks and uncertainties including, but not limited
to, our expectations regarding the acceptance of our products by the
market, our strategy to develop new products and enhance the
capabilities of existing products, our strategy with respect to research
and development, the impact of competitive products and pricing, new
product development, and uncertainties related to the regulatory
approval process. Such statements reflect the current views of the
Corporation with respect to future events and are subject to certain
risks and uncertainties and other risks detailed from time-to-time in
the Corporation’s ongoing filings with the securities regulatory
authorities, which filings can be found at www.sedar.com, or at www.otcmarkets.com. Actual
results, events, and performance may differ materially. Readers are
cautioned not to place undue reliance on these forward-looking
statements. The Corporation undertakes no obligation to publicly update
or revise any forward- looking statements either as a result of new
information, future events or otherwise, except as required by
applicable securities laws. Neither the TSX Venture Exchange, its
Regulation Services Provider (as that term is defined in the policies of
the TSX Venture Exchange) nor the OTCQB accepts responsibility for the
adequacy or accuracy of this press release.
SOURCE PyroGenesis Canada Inc.
For further information please contact: Clémence Bertrand-Bourlaud,
Marketing Manager/Investor Relations, Phone: (514) 937-0002, E-mail: [email protected]
RELATED LINKS: http://www.pyrogenesis.com/
