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- Silex Systems (SLX) and Cameco have signed a binding agreement to buy GE-Hitachi Nuclear Energy’s 76 per cent stake in Global Laser Enrichment
- Silex will acquire a 51 per cent interest in GLE and Cameco will increase its interest from 24 to 49 per cent
- GLE is a uranium technology company and the exclusive licensee for Silex’s laser-based uranium enrichment technology
- This transaction paves the way for the commercialisation of the SILEX technology in the U.S.
- Silex is up a healthy 16.2 per cent following today’s news and shares are trading for 39.5 cents each
Silex Systems (SLX) and Cameco Corporation have signed a binding agreement to buy GE-Hitachi Nuclear Energy’s 76 per cent stake in Global Laser Enrichment (GLE).
Once the agreement is finalised, which remains subject to U.S. Government approvals, Silex will acquire a 51 per cent interest in GLE and Cameco will increase its interest from 24 to 49 per cent.
GLE is a uranium technology company and the exclusive licensee for Silex’s laser-based uranium enrichment technology.
“This is a very positive step forward for both Silex and GLE,” Silex CEO Dr Michael Goldsworthy said.
“Importantly, we are very heartened by the willingness of Cameco, one of the world’s largest uranium and nuclear fuel suppliers, to step up to a 49% stake in GLE,” Michael added.
The purchase agreement to GE-Hitachi Nuclear Energy totals US$20 million (A$29 million). This will consist of four annual payments of US$5 million (A$7.2 million) after the first year GLE generates US$50 million (A$72.7 million) in revenue.
In addition, the agreement will see a three-year lease for a test loop facility in Wilmington, North Carolina along with ongoing activities at Silex’s Lucas Heights facility in Sydney.
The test loop facility is designed to demonstrate the commercial feasibility of Silex’s enrichment technology. It’s intended to advance the design of the equipment and processes for the proposed commercial production facility.
Activities will cost roughly US$330,000 (A$480,000) per month and will be jointly funded by Cameco and Silex on a month-to-month basis.
Timing of the completion of the technology demonstration program by GLE and Silex and the commencement of the historic Paducah Commercial Plant will continue to be reviewed based on market conditions.
Silex is up a healthy 16.2 per cent following today’s news and shares are trading for 39.5 cents each at 3:29 pm AEDT.
