- Silex Systems (SLX) has completed a joint acquisition with Cameco Corporation for a 51 per cent interest in Global Laser Enrichment (GLE)
- The announcement follows the completion of a Membership Interest Purchase Agreement (MIPA) from December 2019
- The acquisition came after a restructure was completed of Silex technology licensee Global Laser Enrichment, which resulted in Silex acquiring the interest in GLE, and Cameco Corporation increasing its interest to 49 per cent
- The MIPA will be paid in four annual instalments of US$5 million (roughly A$6.57 million), shared pro-rata by Silex and Cameco, which will be triggered for the first year after GLE generates US$50 million (around A$65.7 million) in revenues
- Silex and Cameco have also executed several additional documents offering the option for Cameco to purchase an additional 26 per cent interest in GLE
- Silex Systems is down 6.19 per cent, trading at $1.06
Silex Systems (SLX) has completed a joint acquisition with Cameco Corporation, resulting in a 51 per cent interest in Global Laser Enrichment (GLE).
This announcement follows the completion of a Membership Interest Purchase Agreement (MIPA) from December 2019 between the three companies for the joint acquisition of GE-Hitachi’s 76 per cent equity interest in GLE by Silex and Cameco.
The acquisition came after a restructure was completed of Silex technology licensee Global Laser Enrichment, which resulted in Silex acquiring the interest in GLE, and Cameco Corporation increasing its interest in the company from 24 per cent to 49 per cent.
The MIPA will be paid in the form of four annual instalments of US$5 million (roughly A$6.57 million), shared pro-rata by Silex and Cameco, which will be triggered for the first year after GLE generates US$50 million (around A$65.7 million) in revenues.
“The completion of this acquisition represents a significant achievement for Silex, giving us greater control over the commercialisation of the Silex laser enrichment technology,” said Silex CEO and Managing Director, Dr Michael Goldsworthy.
“This new ownership structure, together with the recently announced U.S. Government approval, represents the start of an important new era for GLE and the Silex technology, at a time when nuclear power is coming back into focus as a key source of zero-emissions base load electricity in an emissions constrained world,” he added.
Additionally, Silex and Cameco have amended their previous commercialisation and license agreement from 2013 to align it with the new GLE ownership, although key commercial terms of the technology licence remain unchanged.
Silex and Cameco have also executed several additional documents offering the option for Cameco to purchase an additional 26 per cent interest in GLE, which could potentially take its interest in the company to 75 per cent, dropping Silex’s interest to 25 per cent.
This option can be exercised by Cameco from 31 January 2023 up until the date 30 months after the technology is satisfactorily demonstrated at full commercial pilot scale.
Silex Systems is down 6.19 per cent, trading at $1.06 at 10:45 am AEDT.