$22 Million Loan and HALEU Supply Agreement Link ASP Isotopes to TerraPower Project
Key Facts
ASP Isotopes announced on May 19, 2025, that it had signed definitive agreements with TerraPower to finance a proposed facility for producing high-assay low-enriched uranium (HALEU) and supply it in the future. The loan has a nominal value of $22 million, but will be disbursed in tranches after conditions are met, including obtaining the necessary licenses and permits in South Africa. According to the company's report filed with the U.S. Securities and Exchange Commission, the company will receive a total of $20 million after an original issue discount of 10% is applied to each tranche. The difference between the nominal value and net proceeds shows that the financing does not represent the full cost of building the facility. Disbursement is also conditional, making regulatory and execution progress essential to turning the agreement into available funding.
The deal includes two supply agreements, one of which aims to provide the fuel needed for the initial core load of TerraPower's Natrium reactor project in Wyoming. The long-term agreement runs for 10 years, from 2028 through the end of 2037, and allows for the supply of up to 150 metric tons of HALEU. These terms set a timeframe and volume for the commercial relationship, but are tied to fuel production at the proposed facility. The company said the facility in Pelindaba is designed to produce about 15 metric tons per year. It expects initial production to begin in 2027, subject to obtaining all required licenses and permits.
The terms of TerraPower's loan include a fixed annual interest rate of 10%, with principal and interest to be repaid in 60 equal installments beginning in November 2027. According to the disclosure, the repayment schedule begins before the facility's expected initial production start date in 2027, which is subject to regulatory approvals. This places financing and repayment obligations among the project's execution considerations, alongside completing construction and licensing. The company has not disclosed a total cost for the facility or a detailed schedule for disbursing each tranche in the available information. It also said the parties agreed to explore opportunities to develop uranium enrichment facilities in the United States, without specifying locations or timelines for those opportunities.
The TerraPower agreement comes as the market seeks to establish new HALEU supplies. The U.S. Department of Energy defines the fuel as uranium enriched to more than 5% and less than 20% in the uranium-235 isotope, and says it is not currently available from domestic suppliers. The department estimated that domestic demand could reach 50 metric tons per year by 2035, with additional quantities needed in subsequent years as a new generation of advanced reactors is deployed. TerraPower's contract, capped at 150 metric tons over 10 years, is aimed at meeting needs related to the Natrium project, while execution depends on the facility's ability to reach its expected production. The U.S. Nuclear Regulatory Commission issued a construction permit for the Natrium project's Kemmerer 1 unit on March 4, 2026, while TerraPower expects to submit an operating license application in 2028.
In a separate, more recent development, ASP Isotopes announced on October 15, 2026, that its subsidiary Quantum Leap Energy (QLE) had signed a binding framework agreement with Necsa to establish a joint venture to develop, finance, build and operate a HALEU facility in Pelindaba. Under the announced principles, QLE will own about 80% of the venture and Necsa about 20%; Necsa will provide site access and support nuclear safeguards, licensing and regulation. QLE received approval in July 2026 from South Africa's Department of Electricity and Energy to possess, use and transport nuclear materials, equipment and technology in support of uranium enrichment activities in Pelindaba. The agreement adds a local partnership and regulatory route to the facility project, while completion of licensing and execution remain prerequisites for production to begin. ASP Isotopes shares closed at $2.03 on October 28, 2026, according to EL7 data.