5E Advanced Materials secures $60 million investment from large US investor

5E Advanced Materials, an exploration stage boron and lithium company with US government Critical Infrastructure designation for its Fort Cady asset, has announced that it has entered into a definitive agreement with Bluescape Energy Partners for a $60 million private placement of senior secured notes convertible into common stock of the company.

Bluescape is a US-based institutional investment manager with particular experience in building, operating, and investing in real assets. Its focus is in the power and energy transition sector, with the company expecting to leverage Bluescape’s substantial experience and relationships within the power and resources sectors, US shareholder base, and federal government.

5E said it is also pleased to provide a project and company update as the boron and lithium markets remain favorable and construction, commercial, and government activities progress on schedule.

Commenting on the investment and company update, 5E president and CEO, Henri Tausch, said: “We are pleased to partner with Bluescape as they are a respected US institutional investor that offers value to our company far beyond that of a typical financial investment.

“They are a well-resourced, strategic organisation led by leaders in the power and energy transition sector, including their CEO, John Wilder. We look forward to working with Bluescape in creating value to all shareholders and view this Investment as an attractive source of capital that bolsters our balance sheet and project, while serving as an indicator of the 5E value proposition.”

He added: “We also continue to see tremendous team effort as we advance construction of our Small-Scale Boron Facility towards target CQ4 2022 mechanical completion. We are pleased to report significant progress to date as Fort Cady has become a beehive of activity with more than 54,000 hours logged this year. We are also pleased with our commercial progress as boron prices have increased meaningfully and customer conversations are progressing after signing an LOI with an innovative leader in Corning Incorporated.”

Bluescape executive chairman and CEO, John Wilder, said: “We see tremendous value in 5E and their boron and lithium resource in Southern California. The asset aligns with many crucial issues today, including the onshoring of critical materials, decarbonisation, and domestic security.

“We also have confidence in the 5E management team as they possess a diverse skillset that is capable of effectively commercialising this critical asset. We look forward to partnering with 5E as we merge skills and relationships to generate value for stakeholders.”

For more information visit 5eadvancedmaterials.com