PyroGenesis Canada (PYR) has signed an additional contract worth approximately C$1.1 million with a U.S. tunnelling company.
The company is familiar with the unnamed tunnelling business, having previously won contracts from it in April of this year. The first two agreements were worth approximately US$400,000 (roughly C$510,250) and US$325,000 (roughly C$414,578).
This latest contract follows on from those initial agreements, extending PyroGenesis’ professional relationship with the client. Under the contract, PyroGenesis will design, manufacture, test, and supply the customer with a plasma torch and auxiliary equipment tailored to tunnelling.
The company’s high-powered plasma torch will replace traditional tunnelling methods currently employed by the client. As a plasma-based tool, the torch has the potential to drill through all geologies with greater flexibility in size diameter, while also being more economical, efficient, and environmentally friendly.
PyroGenesis expects to deliver the TT1 Torch to the client in 2021’s second half, at which time it will undergo testing. The US-based tunnelling company is reportedly committed to purchasing plasma torches and auxiliary equipment exclusively from PyroGenesis.
PyroGenesis’ Chair and CEO, P Peter Pascali, noted that this is the second announcement that the company has made in as many months about its plasma torches.
“As you can see, not only are our torch offerings steadily moving forward, but are doing so in totally independent applications,” he said.
“This bodes well for the future and once again, underscores both the interest in, and versatility of, our torch offerings which at the same time are being recognised as effective environmental solutions,” he added.
PyroGenesis Canada is down 0.30 per cent and trading for $3.32 per share, as of 10:04am EST.