Silex Systems Limited (ASX:SLX) and Cameco Corporation (TSX:CCO) entered into a term sheet to acquire remaining 76% stake in GE Hitachi Global Laser Enrichment LLC (GLE) from GE-Hitachi Nuclear Energy, Inc. (GEH) for $20 million on February 5, 2019. Silex Systems Limited and Cameco Corporation signed binding agreement to acquire remaining 76% stake in GE Hitachi Global Laser Enrichment LLC (GLE) from GE-Hitachi Nuclear Energy, Inc. (GEH) on December 16, 2019. The term sheet also provides for a deferred purchase price of $20 million payable to GEH in four consecutive annual installments of $5 million, commencing after the first calendar year in which GLE achieves revenues of $50 million, to be paid by the purchasers pro-rata to the interests acquired in GLE.

Under the terms of the transaction, Silex and Cameco will provide funding for the continuing Wilmington Test Loop activities of $0.3 million per month on a pro-rata basis, retrospectively from September 1, 2018 until closing or termination of the binding purchase agreement should closing not be attained. Upon closing, the transaction would result in Silex acquiring a 51% interest in GLE and Cameco increasing its interest in GLE from 24% to 49%. A termination fee of $1 million payable by Silex to GEH in the event Silex terminates the agreement (without cause) before closing of the Agreement, except for termination due to the inability to obtain satisfactory US government approvals, or if the GLE-DOE tails agreement is terminated for any reason before Closing. Silex and Cameco are also working through several ancillary documents which will support the restructure of GLE under the proposed transaction, including a new shareholders' agreement for the governance of GLE after Closing of a binding Purchase Agreement. Under these documents, Silex and Cameco have negotiated several other key terms, including an option for Cameco to purchase from Silex at fair market value, an additional 26% interest in GLE, increasing their interest to 75% (subject to US Government approvals).

The transaction is subject to subject to finalizing a mutually satisfactory binding agreement. The parties are aiming to execute the binding purchase agreement by April 30, 2019. As of April 23, 2019, the execution of binding purchase agreement is expected to be finalized in the current quarter. Closing of a binding purchase agreement will be conditional, among other things, on obtaining US Government approvals and on the 2016 GLE-DOE Sales Agreement (for GLE's purchase of DOE depleted tails inventories) remaining in full force and effect. The initial application for US Government approval of the transaction has been prepared and was submitted to the US Nuclear Regulatory Commission in mid-February, 2020. US Government approval for the GLE restructure is expected to be received by the end of calendar year 2020. As of January 8, 2021, GLE has received notice from the US Nuclear Regulatory Commission (NRC) that it will be granted a stand-alone Facility Clearance which will enable GLE to continue to operate under new ownership as a foreign owned entity, pursuant to closing of the Membership Interest Purchase Agreement. As of January 18, 2021, US Department of the Treasury - Committee on Foreign Investment in the United States (CFIUS) has approved the transaction. Subject to finalization of the remaining conditions precedent under the agreement, the transaction is expected to close in the next few weeks. Christopher M. Barbuto and Sara Garcia Duran of Sidley Austin LLP acted as legal advisor for General Electric, parent of GE-Hitachi Nuclear Energy.

Silex Systems Limited (ASX:SLX) and Cameco Corporation (TSX:CCO) completed the acquisition of remaining 76% stake in GE Hitachi Global Laser Enrichment LLC (GLE) from GE-Hitachi Nuclear Energy, Inc. (GEH) on January 31, 2021. As a result of the transaction, Cameco's interest in GLE increases from 24% to 49%, with Silex holding the remaining 51% and all of conditions pertaining to the acquisition are now completed.