5E Advanced Materials Announces Agreement to Sell $6 Million of Additional Convertible Notes

Core Insights - 5E Advanced Materials, Inc. has agreed to issue $6 million in additional senior secured convertible notes to support ongoing operations and engineering efforts for its Small-Scale Facility and FEL-2 engineering [1][2] - The company aims to optimize capital expenditures (CAPEX) and operational expenditures (OPEX) while preparing for customer qualification and commercial agreements [2][6] - The company is focused on becoming a vertically integrated leader in boron and lithium production, targeting applications in electric transportation, clean energy, and domestic security [4] Financial Updates - The additional notes will be purchased by Bluescape Energy Partners and Ascend Global Investment Fund SPC, with an initial conversion price of $1.53 per share and a maturity date in August 2028, paying interest in-kind at 10% [1][2] - The capital raised will enhance cash resources for the small-scale facility, which has shown promising initial operational results [2] Operational Highlights - Mining operations commenced in early 2024, with the first batch of boric acid produced in April 2024, achieving a run-of-mine head grade of 5.5% [6] - The company is refining its boric acid filtering, drying, and bagging processes to meet customer specifications, with the customer qualification process expected to begin shortly [6] Strategic Objectives - 5E's mission is to supply critical materials for global decarbonization and food security, leveraging its large domestic resource located in Southern California, designated as Critical Infrastructure [4] - The company plans to develop capabilities from upstream extraction to downstream processing of boron and lithium products [4]