5E Advanced Materials Inc. operates as an exploration stage company.
The company focuses on becoming a vertically integrated global supplier of boron specialty and advanced materials, complemented by lithium carbonate production capabilities.
The company’s business is based on its large domestic boron and lithium resource in Southern California, and it intends to leverage this asset once commercially operational to internally supply its proposed downstream advanced material development activit...
5E Advanced Materials Inc. operates as an exploration stage company.
The company focuses on becoming a vertically integrated global supplier of boron specialty and advanced materials, complemented by lithium carbonate production capabilities.
The company’s business is based on its large domestic boron and lithium resource in Southern California, and it intends to leverage this asset once commercially operational to internally supply its proposed downstream advanced material development activities overtime.
The company holds 100% of the rights—either through ownership or leasehold interest—in Fort Cady (Fort Cady or the Project) through its wholly owned subsidiary, 5E Boron Americas, LLC (5E Boron Americas). Through a multi-phased approach, the company plans to develop Fort Cady into a large-scale boron and lithium complex. Fort Cady is based on a conventional colemanite deposit, which is a hydrated calcium borate mineral found in evaporite deposits. The deposit hosts a mineral resource from which it intends to extract and process into boric acid, boron advanced materials, lithium carbonate, and potentially other co-products. These materials are scarce in resource subject to supply risk as a large portion of their consumption in the United States is sourced from foreign producers and are essential for supporting critical industries.
Properties
Fort Cady
The company holds 100% of the rights—either through ownership or leasehold interest—in the Project. Fort Cady is located in the Mojave Desert region in eastern San Bernardino County, California, approximately 36 miles east of Barstow, near the town of Newberry Springs and two miles south of Interstate 40 (I-40). Fort Cady lies approximately 118 miles northeast of Los Angeles, California, or approximately half-way between Los Angeles and Las Vegas, Nevada. Access to Fort Cady is eastbound from Barstow on I-40 to the exit for Newberry Springs. From the exit of New Berry Springs, travel continues south on County Road 20796 for 2.2 miles to an unnamed dirt road bearing east for another 1.1 miles to the mine office and plant site at Fort Cady.
Mineral Tenure
Mineral tenure for Fort Cady is through a combination of federal mining claims, a mineral lease, and private fee simple lands. These include 1,010 acres of fee simple patented or privately held land; 2,380 acres of unpatented claims held by FCCC; and 1,520 acres of unpatented claims leased by Fort Cady (California) Corporation (FCCC) from Elementis Specialties, Inc. (Elementis).
Other areas surrounding the Fort Cady area include patented and unpatented lands of the Hectorite Mine directly west of Fort Cady and unclaimed public lands managed by the U.S. Department of Interior, Bureau of Land Management (BLM) to the north and east. Land south of the Fort Cady area are part of the U.S. Marine Corps Twentynine Palms Base.
FCCC owns two parcels of fee simple lands in Sections 25 and 36, Township 8 North, Range 5 East, SBM. An electrical transmission corridor operated by Southern California Edison (SCE) tracts north-eastward through the fee lands with SCE having surface and subsurface control to a depth of 500 feet and affecting approximately 91 acres of land owned by FCCC. While this limits access to the land, mineralization occurs at depths in excess of 1,000 feet, which is accessible to solution mining. FCCC holds two unpatented lode claims and 117 unpatented placer claims.
FCCC entered into a mineral lease agreement with Elementis to examine the mineral potential and develop commercial mining operations for a group of mining claims that are adjacent to the Hectorite Mine. The lease covers 36 unpatented placer claims, 15 unpatented lode claims, a diagonal swath of two unpatented placer claims, and excludes any and all patented claims. The lease carries a 3% royalty on net returns from all ores, minerals, or other products produced from the leased lands. The lease became effective on October 1, 2011, with an initial duration of 10 years with certain provisions to extend the lease. FCCC and Elementis executed a lease extension until March 31, 2023.
Finally, the State of California owns approximately 272 acres of land in Section 36, Township 8 North, Range 5 East, SBM.
Salt Wells Projects
In addition to the Project, the Earn-in Agreement with Great Basin Resources Inc. allows the company to acquire a 100% interest in the Salt Wells Projects in the State of Nevada if it incurs project related expenditures. The Salt Wells Projects cover an area of 14 square miles and are considered prospective for borates and lithium in the sediments and lithium in the brines within the project area. The Salt Wells Projects are located in Churchhill County, Nevada, 15.5 miles southeast on Route 50 from the town of Fallon, Nevada. The Salt Wells Projects are within close proximity to the Interstate 80 corridor, which provides access to infrastructure, including rail and ports. The town of Fallon has a population of over 9,000 according to the 2020 United State Census Bureau, as well as a municipal airport. The Salt Wells North project consists of 171 mineral claims and the Salt Wells South project consists of 105 mineral claims, with each claim being 20 acres.
Strategy
The company’s business strategy is to develop capabilities ranging from upstream extraction and the product sales of boric acid, lithium carbonate and potentially other co-products, to downstream boron advanced material processing and development.
The company’s strategy is founded on leveraging its large mineral resource, related proposed infrastructure project, project development and advanced materials expertise to develop a vertically integrated business focused on boron specialty and advanced materials, complemented by lithium production capabilities.
The key elements of the company's strategy include to develop and commercialize Fort Cady to produce an economical and secure supply of boron and lithium and focusing on a more environmentally friendly in-situ extraction process as compared to traditional mining; establish competitive market positions in high value, high margin markets for boron specialty and advanced materials and lithium that address decarbonization, food security, and production of domestic supply; sign offtake agreements and develop commercial partnerships to expand high-performance boron and lithium product capabilities and embed itself in customer supply chains; and potentially diversify its sources of supply.
Agreements
In March 2022, the company executed a research agreement with Georgetown University that aims to enhance the performance of permanent magnets through increased usage of boron.
Governmental Regulation
Federal legislation and implementing regulations adopted and administered by the Environmental Protection Agency, the Bureau of Land Management, the Fish and Wildlife Service, the Army Corps of Engineers and other agencies, including legislation, such as the federal Clean Water Act (CWA), the Safe Drinking Water Act (SDWA), the Clean Air Act, as amended (CAA), the National Environmental Policy Act (NEPA), the Endangered Species Act, the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA), and the Resource Conservation and Recovery Act (RCRA), have a direct bearing on the company’s proposed solution mining and processing operations.
Any future processing operations by the company may produce air emissions, including fugitive dust and other air pollutants from stationary equipment, storage facilities and the use of mobile sources, such as trucks and heavy construction equipment, which are subject to review, monitoring and/or control requirements under the Clean Air Act, as amended (CAA) and state air quality laws, as administered by the Mojave Desert Air Quality Management District.
History
5E Advanced Materials Inc. was incorporated in 2021. The company was formerly known as American Pacific Borates Limited.
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