5E Advanced Materials Closes First Tranche of Equity Financing Following Special Meeting

New capital expected to provide the necessary resources to advance mining operations and move towards first production

HESPERIA, Calif., Jan. 19, 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, today announced it has closed its first tranche of equity financing following a favorable vote from the Company’s stockholders at its special meeting held last week. The first closing included $10 million in new equity capital split equally between Ascend Global Investment Fund SPC (“Ascend”) and 5ECAP, LLC (“5ECAP”). This equity capital is expected to provide the necessary resources to advance mining operations and progress towards first production.

The first tranche of closing also coincided with an amendment and restatement of the note purchase agreement related to the Company’s senior secured convertible notes held by Bluescape Special Situations IV, LLC, and in parallel, half of the outstanding convertible notes were acquired by Ascend and Meridian Investments Corporation. The second tranche of additional equity financing is expected to close at the end of January.

Paul Weibel, Chief Financial Officer of 5E Advanced Materials, stated, “We are pleased to complete the closing as these funds provide the runway to progress operations at our facility. We commenced mining at the start of the new year and now have additional capital in hand to deploy towards the execution of our strategy, value proposition, and first production.”

About 5E Advanced Materials, Inc.

5E Advanced Materials, Inc. (Nasdaq: FEAM) (ASX: 5EA) is focused on becoming a vertically integrated global leader and supplier of boron specialty and advanced materials, complemented by lithium co-product production. The Company’s mission is to become a supplier of these critical materials to industries addressing global decarbonization, food and domestic security. Boron and lithium products will target applications in the fields of electric transportation, clean energy infrastructure, such as solar and wind power, fertilizers, and domestic security. The business strategy and objectives are to develop capabilities ranging from upstream extraction and product sales of boric acid, lithium carbonate and potentially other co-products, to downstream boron advanced material processing and development. The business is based on our large domestic boron and lithium resource, which is located in Southern California and designated as Critical Infrastructure by the Department of Homeland Security’s Cybersecurity and Infrastructure Security Agency.