The Company’s primary focus is on the continued development and commercialisation of our core asset – the SILEX technology, and more recently on the restructure of our Licensee GE-Hitachi Global Laser Enrichment LLC (GLE). GE-Hitachi Nuclear Energy (GEH) announced in April 2016 that they are looking 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.
Under the term sheet signed with GEH, Silex further agreed 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.
Silex has taken the lead on the search for new investors in GLE, with a preference for securing high calibre strategic investors who are capable of supporting GLE’s transition to market with the SILEX technology. Discussions and due diligence activities continue 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 which will underpin GLE’s value going forward. These assets include:
- the highly skilled and specialised engineering team based in Wilmington (in addition to the highly talented laser development team in Sydney);
- the Test Loop demonstration facility that has operated since 2010 and continues to advance the technology towards full-scale demonstration; and
- 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.
In addition to the abovementioned key assets, the Paducah commercial plant opportunity (to produce natural grade uranium from the reprocessing of tails stockpiles owned by the US Department of Energy (DOE)) has been negotiated exclusively between the DOE and GLE.