NANO Nuclear Energy has agreed to acquire US nuclear fuel processing facilities, including an existing license from the Nuclear Regulatory Commission, in a deal valued at $13.5 million.
The Company is purchasing the assets of Radnostix, formerly International Isotopes, and its subsidiary International Isotopes Fluorine Products. The package includes technologies for deconversion of depleted uranium hexafluoride (DUF6) and fluorine extraction related to a proposed facility in Lea County, New Mexico.
Under the terms of the agreement, NANO Nuclear will pay $9.5 million in cash and $4 million in common stock upon closing. The deal is expected to close in approximately 90 to 120 days, subject to regulatory approvals and other conditions.
The acquisition could give NANO Nuclear a head start in expanding its nuclear fuel operations in the U.S., as assets include an NRC 10 CFR Part 40 license and years of licensing, engineering and technical work. However, the proposed New Mexico facility covered by the license was never built.
The nuclear license changes hands
Along with the NRC license, NANO Nuclear will acquire patented technology, technical and safety analyses, regulatory and permitting documents, equipment and historical project development records.
The technology is designed to support DUF6 deconversion, a process of converting depleted uranium hexafluoride into more stable chemical forms. The operation would also recover fluorine from the material.
The acquisition fits with NANO Nuclear’s broader efforts to build a vertically integrated nuclear energy business that includes fuel production and nuclear fuel cycle capabilities.
Closure is not guaranteed. The transaction requires approval from the NRC for the license transfer and other approvals, including those involving New Mexico officials. NANO Nuclear must also secure satisfactory site arrangements and meet additional closing conditions.
“We have full confidence that NANO will bring these DUF6 deconversion and fluorine extraction facilities over the finish line and fill a material need for the U.S. nuclear fuel cycle industry,” said Shahe Bagerdjian, CEO of Radnostix.
“The location, license and technology fit perfectly with NANO’s strategy to become a vertically integrated nuclear energy company and we are pleased to become NANO shareholders.”
Ambitions for the fuel cycle are increasing
The deal also marks a shift for Radnostix, which plans to focus on radioisotope technologies for medical and industrial applications after the sale.
Radnostix said it intends to use the net proceeds from the transaction to expand its four radioisotope technology product segments through research and development, organic growth and possible acquisitions.
The Idaho-based company makes radioisotope products including sodium iodide I-131, which is used to treat hyperthyroidism and thyroid cancer. The company also supplies radioisotope materials for theranostics and produces calibration and reference standards for nuclear pharmacies and imaging systems.
“For Radnostix, this transaction gives us the best of both worlds and allows us to retain some upside potential via NNE stock while allowing us to fully focus on our radioisotope technologies in medical and industrial applications,” Bagerdjian said.
If completed, the acquisition would transfer an already licensed but unrealized U.S. nuclear fuel cycle project to NANO Nuclear, giving the company a technology and regulatory foundation that could otherwise take years to develop from the ground up.
