FEAM - 5E Advanced Materials Announces Agreement to Sell $6 Million of Additional Convertible Notes | Benzinga
Additional notes expands the Company's runway for further refinement of active operational process development and expanded commercial arrangements
Company provides additional updates on recent operational performance
HESPERIA, Calif., May 28, 2024 (GLOBE NEWSWIRE) -- 5E Advanced Materials, Inc. (NASDAQ:FEAM) (ASX: 5EA) ("5E" or the "Company"), a boron and lithium company with U.S. government Critical Infrastructure designation for its 5E Boron Americas Complex, agreed to issue $6 million in additional senior secured convertible notes (the "Notes"). Bluescape Energy Partners and Ascend Global Investment Fund SPC will each purchase $3 million in additional Notes that will be initially convertible into common stock at $1.53 per share, with an August 2028 maturity, paying interest in-kind at 10%. The additional capital will facilitate the ongoing operation of the Small-Scale Facility and FEL-2 engineering while the Company progresses qualifying customers for commercial offtake agreements and continues to pursue various government funding applications.
Paul Weibel, Chief Financial Officer at 5E Advanced Materials, stated, "This new capital will provide additional cash resources to operate the small-scale facility as our team turns our focus towards engineering and financing for our large commercial operation. We are highly encouraged with the initial operational results of our small-scale facility, which underscores the quality of our resource deposit and conversion process. Since launching operations this year, we have captured data that is assisting in identifying ways to optimize our expected CAPEX and OPEX and build the base foundation for the commercial scale engineering. We expect the customer qualification process to kick-off in the short term so we can begin placing boric acid in future customers hands."
Additional details regarding the additional Notes are included in a Current Report on Form 8-K the Company filed this morning with the Securities and Exchange Commission at www.sec.gov.
Recent Operational Highlights:
- Mining operations commenced at the start of 2024 and announced appointment of EPC firm to spearhead commercial engineering.
- Bench tested mined leach solution to produce commercial grade boric acid.
- Production commenced in early April 2024 and 5E achieved run-of-mine head grade of 5.5%.