So to get this right, Silex owns 51% and Cameco 49% (with an option to buy a further 26% from silex at fair market value). Silex will then own 25% and a huge amount of cash from the sale. They plan to build a demonstration plant by 2025 and full scale plant by 2027. They plan to produce natural UF6 (equilivant to 5m pounds of uranium) per year for 30 years. The 'tails' are depleted UF6 which is a biproduct of uranium enrichment that needs to be stored. I'm guessing SLX and Cameco could access these tails for no or little cost since it's a waste product. So their 'production' costs will be incredibly low. PDN plans to produce the same amount of uranium, 5m pounds at a much higher cost. PDN's market cap is over $2B.
When in production SLX will receive 25% of all revenue from the 'production' of natural UF6 PLUS a royalty of between 7-12% of revenues which could add around US$75M per year. This is not including the other applications that SILEX have 100% interests in, which is the silicon enrichment and medicinal applications.
So what you are getting for a $800m market cap company is a future producer of uranium with guaranteed royalties PLUS 25% revenue as well as 2 other applications that the technology can assist in. Sounds good to me! Not to mention also LEU and HALEU.
