The GLE restructure was successfully completed in January 2021, following conclusion of a lengthy US Government approval process. The transaction involved the joint purchase of GE-Hitachi’s (GEH) 76% interest in GLE by Silex and Cameco. Closing of the Agreement resulted in Silex acquiring a 51% interest in GLE and Cameco increasing its interest from 24% to 49%.
The transaction included a site lease between GLE and GEH which will enable GLE to complete the SILEX technology commercialisation program at the Test Loop facility in Wilmington, North Carolina. This program will culminate with the full-scale demonstration of the SILEX uranium enrichment technology with a pilot plant facility, currently being built at the Wilmington site.
Silex and Cameco have also negotiated terms for an option for Cameco to purchase from Silex at fair market value, an additional 26% interest in GLE, potentially increasing their interest to 75% (subject to USG approvals). This option underscores the support and strength that Cameco, as one of the world’s leading uranium and nuclear fuel suppliers, brings to GLE and the commercialisation program.
A key objective of Silex's acquisition of a 51% majority interest in GLE is to allow the Company to create new opportunities by becoming more directly involved in the SILEX technology commercialisation program and in GLE's business development path. In particular, there is significant value in the proposed Paducah, Kentucky commercial project which, using large stockpiles of depleted uranium tails inventories owned by the DOE as feed material, will enable GLE to become a global scale producer of natural and enriched uranium for nuclear fuel.