Canada's Pure Technologies Ltd said it will resume normal activities in Libya following receipt of a C$16 million payment from Man-Made River Authority, sending the infrastructure inspection company's shares up 11 percent.
Pure has an inspection and monitoring contract with the Man-Made River Authority, which supplies most of Libya's drinking water.
The payment constitutes 70 percent of the value of previous shipments made under a C$30 million contract awarded in 2010 for the supply of proprietary acoustic monitoring technology, Pure said in a statement.
Pure will also resume activities on the project, including shipment of the remaining monitoring equipment worth C$10.7 million held up since fighting broke out in Libya in 2011 and caused a temporary halt to operations.
Pure's efforts in the Middle East and Asia over the last two years are expected to start bearing fruit in the coming year, and resumption of activities in Libya adds a very nice tailwind, Canaccord Genuity said in a note to clients, and raised the price target to C$6 from C$5.25.
Shares of Calgary-based Pure were trading up 27 cents at C$4.25 on Friday on the Toronto Stock Exchange.