Overland Park, Kansas – September 18, 2026 -- Searles Valley Minerals Inc. has agreed to sell substantially all of its operating assets to 5E Advanced Materials, Inc. (Nasdaq: FEAM) in a court-supervised Section 363 transaction combining cash, equity and debt, following a competitive bidding process involving multiple parties.
5E secures Westend and Argus plants alongside 9,000 acres of brine resources
The deal transfers Searles Valley Minerals' Westend and Argus production facilities, approximately 9,000 acres of Searles Lake brine resources, the Trona Railway short-line railroad, and potable water production and distribution infrastructure located in San Bernardino, Kern and Inyo Counties, California. The assets carry permits, licenses and operating rights tied to more than 150 years of continuous mining activity at the site.
Consideration totals cash, equity and a senior note
5E will pay $3,357,906 in cash, issue 8,300,000 shares of its common stock, and deliver a $6,220,000 senior unsecured note as consideration. The buyer has lined up $10 million in bridge financing from Searles Valley Minerals' ultimate parent company to fund the acquisition and provide working capital during the transition.
Delaware court hearing sets stage for October close
The Debtors sought approval of the Asset Purchase Agreement at a hearing before the U.S. Bankruptcy Court for the District of Delaware on September 15, 2026. The transaction is expected to close in October 2026, pending court approval and customary closing conditions, including authorization from the Surface Transportation Board for transfer of the Trona Railway assets.
Operations continue uninterrupted through the transition
Westend will keep producing boron, sodium sulfate and other specialty minerals for existing customers, the Trona Railway will continue operating, and Searles Domestic Water Company will maintain uninterrupted potable water service to the Trona community. Dennis Cruise, President of Searles Valley Minerals, said the outcome preserves more than 150 continuous years of mining operations while securing customer relationships and community infrastructure.
Advisory team includes Skadden Arps, Lazard and Ankura Consulting
Skadden, Arps, Slate, Meagher & Flom LLP is serving as general bankruptcy counsel, with Pachulski Stang Ziehl & Jones, LLP as co-counsel. Ankura Consulting Group, LLC is acting as financial advisor and Lazard as investment banker on the transaction.