5E Advanced Materials Inc. has entered into an agreement to acquire certain operating assets of Searles Valley Minerals Inc. through a court-supervised sale process under Section 363 of the United States Bankruptcy Code.

The transaction shifts 5E from a pre-revenue developer into an operating critical minerals producer by securing production facilities, brine resources, and processing infrastructure across more than 9,000 acres at Searles Lake in San Bernardino County, California. Aggregate consideration comprises approximately $3.4 million in cash, 8.3 million shares of common stock, and a $6.2 million senior unsecured promissory note from a subsidiary.

The company plans to maintain operations in Trona without interruption and retain a meaningful portion of the workforce while preserving its Fort Cady project in Southern California as a long-dated growth resource. The Fort Cady project is designated as Critical Infrastructure by the U.S. Department of Homeland Security and is included on the U.S. Department of the Interior Critical Minerals List.

“The acquisition of Searles Valley's assets and critical mineral production facilities represents a transformative opportunity for 5E, and will accelerate 5E from a pre-revenue development company to a revenue-generating critical minerals producer. For a decade, America's boron supply has depended on foreign-owned production - With Searles Valley's operating facilities and Fort Cady's multi-generational resource under one American company, 5E now has a path to supply both near-term demand and long-term capacity in a mineral with no substitute.”

“This acquisition will have been achieved through a court-supervised competitive process at a fraction of replacement cost, with a modest cash outlay that preserves the Company's balance sheet. It reflects a disciplined approach to building an American critical materials platform - acquiring irreplaceable operating assets while maintaining the financial flexibility to develop Fort Cady.”

— Paul Weibel, Chief Executive Officer of 5E, and Graham van't Hoff, Chairman of the 5E Board

Consummation of the acquisition is subject to customary closing conditions, including Bankruptcy Court approval, Surface Transportation Board authorization, and receipt of $10.0 million in senior secured bridge financing, with completion expected in early October 2026.

Read the full announcement: 5E Advanced Materials Enters into Agreement to Acquire Certain Assets of Searles Valley Minerals