5E Advanced Materials has been selected as the successful bidder for certain assets of Searles Valley Minerals, a transaction that would move the Nasdaq-listed company from a pre-revenue developer into an operating U.S. producer of borates and other critical minerals.
The acquisition is being conducted through a court-supervised Section 363 bankruptcy sale and includes critical mineral production facilities, brine resources and related infrastructure in San Bernardino County, California. Consideration consists of approximately $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.
5E will also assume specified liabilities associated with ongoing environmental compliance obligations. The transaction remains subject to Bankruptcy Court approval and other closing conditions, with completion targeted for early October 2026.
For 5E, the acquisition represents a major shift in its operating profile. The company has been developing its Fort Cady boron project in Southern California but has not yet generated commercial production revenue. Acquiring the Searles Valley assets would give it established production facilities, existing customers and near-term revenue while allowing Fort Cady to remain its longer-term development resource.
“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,” CEO Paul Weibel said.
Searles Valley operates one of only two borate production complexes in the United States. The operation covers more than 9,000 acres at Searles Lake and has a roughly 150-year operating history. According to 5E, the resource has an estimated life of approximately 200 years at current extraction rates.
The assets also include infrastructure that extends beyond mineral processing. The operation has multiple processing facilities, on-site cogeneration and the Trona Railway, a short-line railroad connecting the complex with the national rail network. Existing logistics infrastructure provides access to West Coast ports and Asia-Pacific export markets.
Production includes refined borates sold under the V-BOR brand, boric acid, sodium sulfate and salt. 5E said it has also identified opportunities to expand production of additional byproducts, creating a broader product portfolio than its existing single-project development strategy.
The acquisition comes as boron takes on greater strategic importance within U.S. mineral policy. Boron was added to the U.S. Department of the Interior’s Critical Minerals List in 2025. The material is used across defense, energy and agricultural applications and has no synthetic substitute.
5E said that following the transaction it would become the only American-owned producer of borates in the United States. The company believes combining Searles Valley’s existing production with the Fort Cady resource could establish a larger domestic supply platform and potentially position 5E as the second-largest borates producer in the Western world.
The Section 363 structure is also significant to the economics of the deal. It allows 5E to acquire the specified operating assets free and clear of designated legacy liabilities of the debtors, while assuming agreed obligations needed to continue operations.
Chairman Graham van’t Hoff said the competitive bankruptcy process allowed 5E to acquire the assets at what the company considers a fraction of replacement cost while limiting the upfront cash requirement.
5E expects operations in Trona, California, to continue without interruption and plans to retain a meaningful portion of Searles Valley’s existing workforce. Searles Valley President Dennis Cruise said the business continued supplying borates during the bankruptcy process and expects an orderly transition following closing.
Several conditions must still be satisfied before ownership transfers. Searles Valley and its debtor affiliates are operating under jointly administered Chapter 11 proceedings in the U.S. Bankruptcy Court for the District of Delaware under lead case number 26-10966.
In addition to Bankruptcy Court approval and entry of a sale order, the transaction requires authorization from the Surface Transportation Board related to the transfer of certain railroad assets.
Closing is also conditioned on 5E receiving $10 million of senior secured bridge financing. The principal owner of Searles Valley has committed to provide that financing, subject to definitive documentation and other conditions.
Province LLC and RBC Capital Markets are serving as financial advisors to 5E. Latham & Watkins LLP and Hunton Andrews Kurth LLP are providing legal counsel.
If completed as planned, the acquisition would give 5E an operating critical minerals business alongside its Fort Cady development project, shifting the company from a development-stage strategy toward a combined production and long-term resource platform in the U.S. boron market.
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