Silex Systems Ltd (ASX: SLX) shares are on fire today after the company provided an update on its investment in GE-Hitachi Global Laser Enrichment (GLE).
At the time of writing, the Silex share price is trading at $1.45, a new multi-year high for the company.
What’s driving the Silex share price?
The Silex share price is on the run after the company updated the market on a United States Government decision regarding the restructure of GLE.
According to the update, the US Nuclear Regulatory Commission (NRC) will provide “stand-alone Facility Clearance” for GLE. This will effectively enable GLE to operate under new ownership as a foreign-owned entity.
The approval is subject to the closure of Silex’s Membership Interest Purchase Agreement (MIPA) that was executed in December 2019. The joint agreement was signed between Silex, Cameco Corp and GE-Hitachi Nuclear Energy.
Should all go to plan, the agreement will result in Silex and Cameco owning 51% and 49% stakes respectively in GLE.
Assuming continued positive outcomes regarding the US Government’s approvals over the coming weeks, the transaction is expected to be completed early this year.
Words from the CEO
Silex CEO Dr Michael Goldsworthy commented on the milestone, stating:
The granting of the GLE Facility Clearance is the key step in gaining full US Government approvals for the transaction.
We anticipate the remainder of this process to be concluded in the coming weeks, as recently disclosed. The GLE restructure has been a lengthy and challenging process, but we are now cautiously excited to be within reach of the finish line.
Silex share price performance
Over the past twelve months, the Silex share price has risen by more than 250%, significantly outperforming the broader ASX market.
In March, Silex shares dipped to a 52-week low of 17.5 cents, before reaching their multi-year high today.
At the present Silex share price, the company commands a market capitalisation of $231.5 million.
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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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