ASP Isotopes Inc ( ASPI ) shares are racing higher Wednesday after the company announced that it entered into a term sheet with nuclear company TerraPower.

What Happened: ASP Isotopes ( ASPI ) entered into a term sheet with TerraPower related to the construction of a uranium enrichment facility capable of producing High Assay Low-Enriched Uranium (HALEU).

The term sheet contemplates the preparation of definitive agreements under which TerraPower would provide funding for the construction of a HALEU production facility. 

“Over the last several decades, the scientists at ASP Isotopes ( ASPI ) have developed some of the world’s most advanced isotope enrichment technologies. This term sheet is further validation of our belief that ASP Isotopes ( ASPI ) can offer scalable and capital efficient technology solutions to the supply challenges which exist in global isotope markets” said Paul Mann, chairman and CEO of ASP Isotopes ( ASPI ).

The term sheet contains non-binding and binding provisions, including a period of exclusivity in which ASP Isotopes ( ASPI ) will refrain from negotiating with third parties for the supply of HALEU and will not begin work on another ASP technology-based uranium enrichment facility.

ASP Isotopes ( ASPI ) and TerraPower also plan to enter into a long-term supply agreement for the HALEU expected to be produced at the facility. The agreement would require the customer to purchase all of the HALEU produced for a 10-year period following completion of the facility.

The definitive agreements are expected to be assigned to ASP Isotopes ( ASPI ) subsidiary Quantum Leap Energy. The company is also in discussions with financial institutions about additional capital for the facility. ASP Isotopes ( ASPI ) noted that all funding for the facility is expected to be non-dilutive to shareholders.

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ASPI Price Action: ASP Isotopes ( ASPI ) shares were up 56.5% at $8.85 at the time of publication, according to Benzinga Pro.