Lightbridge Corp (NASDAQ:LTBR)
Lightbridge Corp (NASDAQ:LTBR) and AREVA NP have signed a binding agreement for the development and commercialization of a new line of advanced metallic fuel for nuclear plants. Investors reacted to the news by sending the stock up 7.4%.
Wednesday’s rally did little to reverse a strong selling pressure that has plagued the stock in recent weeks. The stock had initially gapped to highs of $1.40 a share before it slumped, to end the day at $1.20 a share. Lightbridge Corp (NASDAQ:LTBR) faces immediate resistance at $1.40, above which it could rise to highs of $2.00 a share – last seen in June.
Lightbridge-AREVA Joint Venture
The signing of the agreement for the formation of the joint venture comes after six months of intense negotiations focusing on international legal and regulatory complexities. The joint venture should be up and running early next year after the signing of an operating agreement.
Lightbridge Corp (NASDAQ:LTBR) and AREVA have agreed that cash and non-cash contributions into the joint venture will be equal as ownership is on a 50-50 basis. The two companies are currently negotiating agreement on Intellectual property and research and development. Lightbridge has already received a Notice of Allowance in South Korea for a key division patent covering its innovative metallic file assembly design.
Joint Venture Functions
The JV is to act as an exclusive vehicle through which Lightbridge and AREVA are to collaborate on the development, demonstration, licensing and marketing of nuclear fuel assemblies. The venture will encompass pressurized water reactors, boiling water reactors, research reactors and Light water-cooled small-and medium sized reactors. `
“This innovative fuel design offers significant benefit to the nuclear energy industry and efforts are well underway to bring it to market. To achieve this goal, AREVA NP and Lightbridge are engaging our vast worldwide infrastructure, our innovative spirits and, most importantly, our experience,” said Gary Mignogna AREVA CEO.
Lightbridge Corp (NASDAQ:LTBR) has already started to conduct preparatory work for the fabrication and irradiation testing of metallic fuel samples at its Halden research reactor in Norway. The company is also working with leading U.S nuclear utilities as it seeks to gain valuable feedback on the development of its fuel technology.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
Don’t miss out! Stay informed on $LTBR and receive breaking news on other hot stocks by signing up for our free newsletter!
About the author: James Marion is a University of Houston student studying Business with a concentration in Finance. James has interned with several investment professionals and hopes to pursue a career as a professional stock analyst after graduation.