DroneShield bags Paraguayan Government tender for DroneGun product

The Paraguayan Ministry of National Defence has placed an order for DroneShield’s (ASX: DRO) DroneGun tactical drone jammer product, following a competitive tender.

DroneShield’s distributor Mega received the government’s order, which initially comprises the product’s full commercial price for one unit.

The Paraguayan Government will evaluate the DroneGun and if it meets its needs, a larger order will be placed.

According to DroneShield, the DroneGun offers countermeasures against a range of drones. It enables controlled management of drone payload, including explosives, without damaging the surrounding environment or the drone.

Once the drone comes under the DroneGun target, video transmission back to the drone’s operator is stopped immediately. Drones generally respond via a controlled landing or returning back to their starting point, which helps with tracking the operator. The drone remains intact to facilitate forensic investigations.

The Paraguayan Government’s DroneGun order remains subject to DroneShield receiving the US Government’s regulatory approvals. The company anticipates it will gain these in the next month.

This is DroneShield’s first South American order and the company only requires US approvals to export the product to non-NATO countries.

Despite being optimistic it will secure the requisite approvals, DroneShield does caution there are no guarantees they will be granted.

In addition to its prospective South American market, DroneShield is in discussions with a number of international governments regarding its drone security products and expects to provide updates on this in the near-term.

The company’s sales pipeline includes the United States, Australia, United Kingdom, South Korea, France and Spain.

As part of its strategy to gain entry into the Australian market, DroneShield was accepted into Team Defence Australia, which is a joint initiative between the Australian Government’s defence department and Austrade.

DroneShield’s second generation DroneGun – DroneGun MKII – was shipped to several customers during the September 2017 quarter for evaluation.