Silex Systems shares rise after subsidiary secures US grant
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More news: Shares in Silex Systems gained in early trading on the ASX after the technology company's subsidiary Global Laser Enrichment secured an award from the US Department of Energy worth a minimum of $3.1 million.
Silex shares were up 3.9% to $5.83 by 10:50am AEDT, having climbed more than 50% over the last 12 months.
Silex subsidiary secures grant for planned US facility
The news: Uranium enrichment technology company Silex Systems says its subsidiary Global Laser Enrichment (GLE) has secured an award under the US Department of Energy’s (DOE's) Low Enriched Uranium Request for Proposals program.
The numbers: GLE is one of six companies to have secured the award, which provides a minimum contract value of USD2 million ($3.1 million). The total aggregate value for all awardees is USD3.4 billion.
GLE, which holds the exclusive licensee of Silex's enrichment technology, is a joint venture between Silex, which owns 51% stake, and Canada’s Cameco.
The context: Silex said the final award value will depend on the agreed task orders to be subsequently issued by the DOE. The funding may support GLE becoming a significant uranium enrichment supplier into the US market through its planned Paducah Laser Enrichment facility in Kentucky, Silex said.
The project is subject to successful completion of a pilot demonstration project, NRC licensing and feasibility assessment.
The award comes nearly a year after the DOE announced plans to set up an advanced high assay low enriched uranium (HALEU) industry in the country. HALEU is currently only available commercially from Russia.
The source: ASX announcement
