07:45 AM EDT, 09/03/2024 (MT Newswires) -- PyroGenesis Canada Inc. ( PYRGF ) , a high-tech company that designs, develops, manufactures and commercializes advanced plasma processes and sustainable solutions which are geared to reduce greenhouse gases (GHG) and address environmental pollutants, on Tuesday signed a contract with an entity engaged in the production of graphite.

A statement noted the first phase $1 million contract is for the design and delivery of a customized pilot-scale plasma reactor and associated testing system. Upon the successful completion of this phase, the next step would be the development of a full-scale graphite production plant for which PyroGenesis has exclusive rights. The name of the client will remain anonymous for confidentiality reasons.

"Graphite is considered to be a critical mineral that is widely used across manufacturing. It is used in the production of numerous essential materials and products including glass and steel, as well as in the processing of iron, the creation of batteries and pencils, automotive brake linings, and even in some nuclear reactor cores," said P. Peter Pascali, President and CEO of PyroGenesis.

"In fact, graphite is so crucial that is has been labelled as one of the six minerals that have been prioritized in Canada's Critical Mineral Strategy. In this program, graphite has been identified as having a distinct potential to spur Canadian economic growth due to its necessity as an input for priority supply chains. If we are successful in using plasma to extract and valorize graphite at the level that we believe we can, the road ahead for this unique production technique could be very rewarding. But one step at a time."

Under the terms of this contract, PyroGenesis will design and build a system tailored for pilot-scale production of graphite using plasma. Additionally, PyroGenesis has negotiated a 10% royalty on future gross revenues generated from an initial commercial graphite production plant built by the client, and a 5% royalty on any subsequent plants. PyroGenesis is the exclusive plasma supplier and engineering service provider for the construction of any such plants.

PYR closed up 3.8% at 0.82 last Friday, before the Labour Day holiday weekend.