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 (Fort
Cady) Complex, has entered into a non-binding letter of intent
(“LOI”) with Estes Energetics to collaborate in producing boron
advanced materials for solid rocket motors to support the U.S.
space and military industries.
Under the terms of the LOI, 5E and Estes will
work towards a binding agreement for the supply of boron advanced
materials, which are used in the manufacture of solid rocket motor
ignitors. 5E and Estes Energetics will also consider a broader
collaboration focused on partnering on production facilities,
business development activities and sharing technical know-how for
the purpose of developing boron advanced materials and proprietary
intellectual property targeting space and military applications.
The boron advanced materials used by Estes Energetics and under the
terms of the LOI, align with recent U.S. government initiatives and
programs as they are critical in military munitions and civilian
applications and are subject to supply risk given overseas supply
concentration and U.S. reliance on imports.
Estes Energetics is a defense and industrial
company that researches, designs, engineers, manufactures, tests,
and integrates solid-propellant rocket motors, energetics, critical
chemicals, and associated technologies for government and
commercial customers. It combines practical propulsion solution
development with advanced aerospace research and development under
one team. Estes Energetics has engineering, manufacturing, and test
facilities in Penrose, Colorado and Minden, Louisiana. Estes
Energetics was spun off from Estes Industries, who is the world
leader in model rocketry with more than 60 years of experience
producing solid-propellant rocket motors.
Commenting on the LOI with Estes
Energetics, Dr. Dino Gnanamgari, 5E Chief Commercial Officer
noted:
“We look forward to a broad collaboration with
Estes focusing on boron advanced materials necessary for space and
military applications. Estes is an industry leader in the
solid-propellant and aerospace markets.
An important consideration of the collaboration
is our combined mission to onshore critical materials and
technologies that serve critical U.S. government needs. We intend
to have a long-term partnership with Estes as we focus on
continuous innovation in the boron advanced materials space.
Today’s announcement continues to deliver on our
strategy to become a vertically integrated global leader in the
supply of boron specialty and advanced materials.”
Commenting on the LOI with 5E, Karl
Kulling, Estes Chief Executive Officer noted:
“There is a growing awareness of supply chain
risk in the US. By collaborating with 5E, we are building a supply
chain that starts from a domestic mine and continues all the way
through products broadly used in solid rocket motors, pyrotechnics,
and other applications. Boron advanced materials complement our
existing manufacturing and research efforts in critical chemicals
and solid rocket motors. Boron is used in mature products and has
great promise in high-performance fuels.”
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.
Forward Looking Statements and
Disclosures
This press release includes “forward-looking
statements” within the meaning of the Private Securities Litigation
Reform Act of 1995, as amended. All statements other than
statements of historical fact included in this press release
regarding our business strategy, plans, goal, and objectives are
forward-looking statements. When used in this press release, the
words “believe,” “project,” “expect,” “anticipate,” “estimate,”
“intend,” “budget,” “target,” “aim,” “strategy,” “estimate,”
“plan,” “guidance,” “outlook,” “intent,” “may,” “should,” “could,”
“will,” “would,” “will be,” “will continue,” “will likely result,”
and similar expressions are intended to identify forward-looking
statements, although not all forward-looking statements contain
such identifying words. These forward-looking statements are based
on 5E’s current expectations and assumptions about future events
and are based on currently available information as to the outcome
and timing of future events. We caution you that these
forward-looking statements are subject to all of the risks and
uncertainties, most of which are difficult to predict and many of
which are beyond our control, incident to the extraction of the
critical materials we intend to produce and advanced materials
production and development. These risks include, but are not
limited to: our limited operating history in the borates and
lithium industries and no revenue from our proposed extraction
operations at our properties; our need for substantial additional
financing to execute our business plan and our ability to access
capital and the financial markets; our status as an exploration
stage company dependant on a single project with no known
Regulation S-K 1300 mineral reserves and the inherent uncertainty
in estimates of mineral resources; our lack of history in mineral
production and the significant risks associated with achieving our
business strategies, including our downstream processing ambitions;
our incurrence of significant net operating losses to date and
plans to incur continued losses for the foreseeable future; risks
and uncertainties relating to the development of the Fort Cady
project, including our ability to timely and successfully complete
our Small Scale Boron Facility; and other risks. Should one or more
of these risks or uncertainties occur, or should underlying
assumptions prove incorrect, our actual results and plans could
differ materially from those expressed in any forward-looking
statements. No representation or warranty (express or implied) is
made as to, and no reliance should be place on, any information,
including projections, estimates, targets, and opinions contained
herein, and no liability whatsoever is accepted as to any errors,
omissions, or misstatements contained herein. You are cautioned not
to place undue reliance on any forward-looking statements, which
speak only as to the date of this press release.
For additional information regarding these
various factors, you should carefully review the risk factors and
other disclosures in the Company’s Form 10-K filed on September 28,
2022. Additional risks are also disclosed by 5E in its filings with
the U.S. Securities and Exchange Commission, throughout the year,
including its Form 10-K, Form 10-Qs and Form 8-Ks, as well as in
its filings under the Australian Securities Exchange. Any
forward-looking statements are given only as of the date hereof.
Except as required by law, 5E expressly disclaims any obligation to
update or revise any such forward-looking statements. Additionally,
5E undertakes no obligation to comment on third party analyses or
statements regarding 5E’s actual or expected financial or operating
results or its securities.
Authorized for release by:
David Salisbury, Chairman of the Board of Directors
For further information
contact:
Chance PipitoneInvestor Relations cpipitone@5eadvancedmaterials.com
Ph: +1 (346) 433-8912 |
J.T. StarzeckiChief Marketing
Officerjstarzecki@5eadvancedmaterials.comPh: +1 (612) 719-5076 |
Chris SullivanMediachris@macmillancom.comPh: +1 (917) 902-0617 |
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