Cameco invests third tranche investment of $5 million for further development of Uranium Equities’ PhosEnergy Process. Demonstration Plant construction completed and undergoing final commissioning for the recovery of uranium as a by-product of phosphate fertiliser production. The third stage investment, to be used to further the jointly held technology, brings Cameco’s total investment in the PhosEnergy Process to $12.5 million and represents a further strong endorsement of the potential of the process.Cameco can elect to invest up to $16.5 million in the continued development and commercialisation of the PhosEnergy Process. If Cameco invests the final $4 million, the ownership of the technology related to the PhosEnergy Process will be Cameco 63%, UEQ 27% and the original developers10%.
If Cameco earns its interest, it has agreed to provide funding for a minimum of 50% of UEQ’s portion of capital expenditure, under terms to be agreed, for the construction of the first commercial plant, repayable out of earnings.
The PhosEnergy Process is a patented “bolt-on” process to recover U3O8 as a by-product at existing phosphate production facilities. UEQ, through USA registered Urtek LLC, has undertaken the development of the technology in conjunction with the Australian Nuclear Science and Technology Organisation (ANSTO) and a major US-based phosphate producer.
PhosEnergy applies conventional technologies in an innovative manner to achieve low operating costs for uranium production (estimated at $20-25/lb) and high uranium recoveries (estimated at 92%) with improved environmental outcomes and reduced waste.
The Cameco investment will be applied towards the planned operation of a Demonstration Plant at a US-based fertiliser producer and an associated PreFeasibility Study (PFS) on the PhosEnergy Process.
Design and construction of the fully integrated and process controlled Demonstration Plant in Adelaide is complete. It is now undergoing final commissioning before being shipped to the USA.
The Demonstration Plant is planned to operate for 5-6 months at a site in the US commencing in the second half of this year and will provide cost and design data to enable the construction of a full-scale commercial facility. A PFS is also planned to be completed in parallel.
This firstclass asset has been constructed to international standards and can easily be transported to, and integrated into, phosphate fertiliser facilities around the world. It encompasses all of the key aspects of the PhosEnergy process within two 40′ shipping containers.
Bryn Jones, Managing Director of UEQ said “We are pleased that Cameco is to continue its financial, technical and corporate development support of the PhosEnergy Process. The additional funding will underpin the commissioning and planned operation of a state-of-the-art Demonstration Plant at a US-based fertiliser producer which is integral to the completion of a Pre-Feasibility Study on the PhosEnergy Process.
“Cameco has already invested over $12 million in the development and commercialisation of this exciting process, and this latest investment represents a strong endorsement of the potential of PhosEnergy and the opportunities which this technology can unlock,” he added.
