NANO Nuclear Energy has agreed to pay $9.5 million in cash and $4 million in its own stock for a set of federally licensed nuclear fuel assets in Lea County, New Mexico. The company and its subsidiary HALEU Energy Fuel Inc. signed a definitive asset purchase agreement with Radnostix, Inc., formerly International Isotopes Inc., and its subsidiary International Isotopes Fluorine Products, Inc.

The deal covers a Nuclear Regulatory Commission license, along with related intellectual property and technical materials, for a depleted uranium hexafluoride deconversion and fluorine extraction facility that was previously planned for the site but never built.

What NANO Nuclear would get

The package includes patented technology, engineering and safety analyses, regulatory and permitting materials, equipment and historical project development records tied to the license. If the transfer closes, NANO Nuclear would own one of ten NRC-licensed fuel cycle facilities in the United States.

The license was issued under 10 CFR Part 40, the NRC rule for domestic licensing of source material. Its licensing basis was built to meet Subpart H of 10 CFR Part 70, the NRC rule for licensing special nuclear material, under a rulemaking framework the NRC had contemplated at the time. NANO Nuclear said it expects that foundation to offer a more streamlined path for adding further fuel cycle processes through future amendments to the existing license, subject to NRC review and approval.

Deal terms

  • $9.5 million in cash at closing
  • $4.0 million in NANO common stock at closing
  • Closing expected in roughly 90 to 120 days

Closing is subject to NRC consent to transfer the license, other required approvals and consents including from New Mexico officials, and satisfactory site arrangements. The parties said the 90-to-120-day timeline depends on those approvals.

Why the company is doing this

Chief executive James Walker said the acquisition is "fundamentally about securing a strategically valuable position within the U.S. nuclear fuel cycle." He called an existing licensed facility "a foundation we believe is extremely difficult to recreate from the ground up," one that he said gives NANO Nuclear multiple potential pathways to expand its domestic fuel cycle capabilities.

Chairman Jay Yu said the goal is to support "a more complete and resilient domestic nuclear energy industry," both independently and alongside industry partners.

NANO Nuclear said no final investment decision has been made on development of the site. It plans to keep evaluating its options for the acquired assets, including deconversion and other fuel cycle activities, independently or with strategic partners. The company has described the deal as another step in a long-term strategy to build a vertically integrated nuclear fuel platform spanning uranium conversion, enrichment, deconversion and transportation through reactor deployment.