5E Advanced Materials Inc. (NASDAQ: FEAM) announced Monday it has been selected as the successful bidder in a court-supervised sale of select operating assets from Searles Valley Minerals Inc., with aggregate consideration valued at approximately $16 million.
The transaction was conducted under Section 363 of the United States Bankruptcy Code through the U.S. Bankruptcy Court for the District of Delaware. 5E said the deal structure is designed to transfer the operating assets free and clear of specified legacy liabilities held by the debtors.
Consideration comprises roughly $3.4 million in cash, 8.3 million shares of 5E common stock, and an approximately $6.2 million senior unsecured promissory note issued by a 5E subsidiary. A $10 million senior secured bridge financing commitment has also been secured from the principal owner of Searles Valley, the company said.
The acquired assets include critical mineral production facilities, brine resources and related infrastructure spanning over 9,000 acres at Searles Lake in San Bernardino County, California. The site operates one of only two borate production complexes in the United States and produces refined borates, boric acid, sodium sulfate and salt.
Paul Weibel, 5E’s chief executive officer, called the acquisition a "transformative opportunity" that would accelerate the company from a pre-revenue development firm into a revenue-generating critical minerals producer.
Under the deal, 5E will assume certain specified liabilities tied to ongoing environmental compliance obligations. The company said it plans to maintain operations at its Trona, California site and retain a meaningful portion of Searles Valley’s operating workforce.
Several regulatory approvals remain before closing. The transaction requires confirmation by the Delaware bankruptcy court, authorization from the Surface Transportation Board for the transfer of certain railroad assets, and receipt of the $10 million bridge financing.
5E anticipates the deal will close in early October 2026. The acquisition comes two years after boron was added to the U.S. Department of the Interior’s Critical Minerals List in 2025, underscoring the strategic positioning of the company’s expanded portfolio.
Shares of 5E Advanced Materials fell 7.64% on the day of the announcement.
