The Company's primary focus is on the continued development and commercialisation of our core asset - the SILEX technology - and the restructure of our Licensee GE-Hitachi Global Laser Enrichment LLC (GLE). GE-Hitachi Nuclear Energy (GEH) announced in April 2016 that they intend to exit GLE, due to changes in business priorities and the continuing difficult conditions being experienced in the nuclear fuel markets. On 29 April 2016, Silex signed a Term Sheet with GEH securing an exclusive option to acquire GEH's 76% interest in GLE, and the right to assign in part or in whole the acquisition terms to third parties.
On 1 September 2017 Silex announced an amendment and extension of the Term Sheet to allow the parties additional time to work towards a mutually acceptable restructure of GLE. The extended Term Sheet includes several amendments which provide Silex and GEH a more efficient and clearer path to finalizing negotiations on a full and binding Membership Interest Purchase Agreement (MIPA) for the acquisition of GEH's interest in GLE.
The amended and extended Term Sheet, which will remain in force until either execution of the MIPA or the termination of negotiations, contemplates Silex acquiring a majority interest in GLE. Whilst uncertainties remain in finalizing the transaction documentation, Silex is targeting execution of the MIPA in the near future.
Under the amended and extended Term Sheet signed with GEH, Silex further agreed to continue to reimburse GEH its pro-rata share of funding for the Wilmington operation. This is in addition to Silex funding the development of commercial-scale laser systems at its Lucas Heights facility in Sydney. GLE shareholder Cameco (24% owner of GLE) remains supportive of Silex's efforts to restructure GLE.
Meanwhile Silex continues to take the lead on the search for new investors in GLE in order to keep its restructure options open, with the possibility of assigning part of its rights under the Term Sheet to high calibre strategic investors who are capable of supporting GLE's transition to market with the SILEX technology. Discussions continue to advance with a number of interested parties.
Silex firmly believes that GLE is the best vehicle to take the SILEX technology to market, based on the preservation of several key assets and opportunities which will underprin GLE's value going forward. These assets and opportunities include:
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the highly skilled and specialised engineering team based in Wilmington (in addition to the highly talented laser development team in Sydney;
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the Test Loop demonstration facility that has operated since 2010 and continues to advance the technology towards full-scale demonstration;
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the combined construction and operating license (COL) granted by the US Nuclear Regulatory Commission in 2012 for a potential commercial enrichment plant in Wilmington, NC;
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the Paducah commercial plant opportunity (to produce natural grade uranium from the reprocessing of tails inventories owned by the US Department of Energy (DOE) under the Agreement signed between the DOE and GLE.