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TEST LOOP MILESTONE ACHIEVED
21st May, 2013
Highlights:
? Test Loop Program Phase I Milestone successfully completed at GE-Hitachi GLE facility in USA.
? US$15 million milestone payment to be paid to Silex in July 2013.
? Technology now being engineered to commercial scale in Phase II program.
Silex Systems Limited (ASX:SLX) (‘Silex’) is pleased to announce that the Test Loop Program Phase I Milestone: Technology Demonstration, has been successfully completed at GE-Hitachi Global Laser Enrichment’s (‘GLE’) facility in Wilmington, North Carolina, USA. Completion of the Phase I milestone triggers a US$15 million milestone payment from GLE to Silex, to be paid in July 2013.
“The achievement of the Test Loop Phase I Milestone – involving advanced technology demonstration - is a key step in the commercialisation of the SILEX uranium enrichment technology,” Dr Michael Goldsworthy, Silex CEO said today.
“This milestone follows receipt of approval from the US Nuclear Regulatory Commission for a construction and operating license in September last year. Our teams both in Wilmington, North Carolina and Oak Ridge, Tennessee are now firmly focused on Phase II, which includes the economic and engineering validation and scale-up for the construction of the initial commercial production module for the world’s first laser enrichment plant,” he added.
Chris Monetta, GLE President and CEO, said: “GLE is very pleased with the successful completion of the Phase I Test Loop Program. It is a great tribute to the combined GLE-Silex team after several years of excellent work.”
Although the Phase I objectives for the Test Loop program have been achieved, the Test Loop will continue to be upgraded and optimized as part of the Phase II program, the objective of which is to provide full economic and engineering validation of the technology necessary to support the construction and operation of the first commercial production module.
The Path Forward
GLE is conducting a stage-gated approach to commercialisation of the SILEX laser enrichment technology, with the following three phases:
Phase Objectives Status
Phase I:
Test Loop technology demonstration and NRC commercial plant license approval
Completed
Phase II:
Economic and engineering validation for the initial commercial production module
Commenced in 2012
Phase III:
Construction of the first full-scale commercial production facility
Yet to commence
Subject to the outcome of the Phase II program and securing of sufficient conditional customer commitments, GLE plans to make a decision regarding deployment of the technology and the construction of the first full-scale commercial production facility taking into account opportunities and sites as recently disclosed to the ASX.
Further Milestone Payments
Following a recent review and update to the original Technology Commercialisation and License Agreement, signed between Silex and General Electric in 2006, the final commercialisation milestone payment has been restructured into two payments:
o Commencement of construction for the initial commercial plant: US$5 million
o NRC verification of construction compliance of the initial commercial plant: US$15 million
The timeline for these milestones and related activities will be reviewed as Phase II proceeds. Other commercial terms in the agreement, including the royalty, remain unchanged.