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PyroGenesis Confirms Third-Party Verification of Its Fumed Silica: Successfully Meets Major Requirement for Proposed Joint Venture

PYRGF
  • PyroGenesis confirmed that fumed silica produced by its Fumed Silica Reactor (FSR) met critical characteristics in testing by a US-based independent lab, fulfilling the first step of a recent MOU.
  • The potential joint venture (JV) partner has purchased 50 kg of fumed silica for additional testing, which is expected to conclude within 6 weeks.
  • Technical due diligence is ongoing and is projected to be completed within 4 weeks, though timelines may extend based on discovery results.
  • PyroGenesis is in the final stages of exercising its option to acquire a 50% interest in HPQ Silica Polvere Inc. (HSPI) as part of a JV with HSPI and an industrial partner.
  • The proposed JV aims to operate a 1,000 tonne per year fumed silica production plant, with PyroGenesis receiving US$20.0 million to build the FSR under an exclusive manufacturing arrangement.
  • The FSR converts quartz into fumed silica in a single eco-friendly step without hazardous chemicals, offering lower capital costs, reduced energy intensity, and a lower CO₂ footprint compared to traditional methods.
  • The JV will own and operate the system to sell fumed silica at market prices, with HSPI charging a royalty per kilogram sold and profit-sharing terms to be finalized.
  • The JV Partner has an implied off-take agreement to justify the JV's creation, and the plant is expected to be delivered within 12 months of the JV's formation.
  • Definitive agreements for the JV are expected to be signed by the end of Q2 2026, contingent on successful negotiations.
  • Fumed silica is widely used in diverse industries including cosmetics, pharmaceuticals, tires, batteries, and construction as a thickening or anti-caking agent.
  • PyroGenesis holds the rights to convert annual royalty rights into a 50% equity stake in HSPI and maintains an exclusive arrangement as the sole supplier of FSR equipment.
  • Forward-looking statements regarding the JV's formation, timeline, and commercial viability are subject to risks and uncertainties outlined in the company's regulatory filings.