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- Silex Systems (SLX) expects the U.S. Government approvals process to buy GE-Hitachi Global Laser Enrichment (GLE) will be finalised in the coming weeks
- In December 2019, Silex and Cameco Corporation signed a deal to buy GE-Hitachi’s 76 per cent stake in Global Laser Enrichment (GLE)
- From the start, the deal was subject to U.S. Government approvals, which has proven to be a lengthy process
- Pleasingly, the U.S. Nuclear Regulatory Commission (NRC) notified GLE it has granted it a stand-alone facility clearance, which is a key part of the deal
- This will allow GLE to terminate its old licence to operate a facility in North Carolina and apply for a new one to operate in Kentucky
- If all goes smoothly, the approvals process will be completed in the coming weeks and the transaction will be closed shortly after
- Silex shares are up 22.8 per cent and trading at $1.43
Silex Systems (SLX) has given an update on the U.S. Government approvals process for the restructure of GE-Hitachi Global Laser Enrichment (GLE).
GLE is a uranium technology company and the exclusive licensee for Silex’s laser-based uranium technology.
In December 2019, Silex and Cameco Corporation signed a deal to buy GE-Hitachi Nuclear Energy’s 76 per cent stake in Global Laser Enrichment (GLE) for US$20 million (roughly A$29 million at the time).
Broken down, Silex would acquire a 51 per cent interest in GLE and Cameco would increase its interest from 24 to 49 per cent to equal the 76 per cent.
From the beginning, the deal was subject to U.S. Government approvals, which has proven to be a lengthy process.
On December 2, 2020, Silex updated the market, saying it expected the joint deal to be finalised in the new year.
A primary application was first submitted for approval by the U.S. Nuclear Regulatory Commission (NRC) in February last year. Pleasingly, the NRC has now notified GLE it has granted it a stand-alone facility clearance.
This will enable GLE to continue operating under new ownership once the membership interest purchase agreement has closed.
“The granting of the GLE facility clearance is the key step in gaining full U.S. Government approvals for the transaction,” Silex CEO Dr Michael Goldsworthy said.
“We anticipate the remainder of this process to be concluded in the coming weeks, as recently disclosed. The GLE restructure has been a lengthy and challenging process, but we are now cautiously excited to be within reach of the finish line,” Michael added.
At GLE’s request, the NRC will terminate its old licence under which GLE would have operated a test loop facility in Wilmington, North Carolina, as part of the original deal.
This aligns with GLE’s plan to base all commercial operations in Paducah, Kentucky. A separate licence will be applied for in the future.
If all goes smoothly, the approvals process will be completed in the coming weeks and the transaction will be closed shortly after.
Silex shares are up 22.8 per cent and trading at $1.43 at 2:08 pm AEDT.
