for each of the twenty (20) consecutive trading days prior to the time 5E delivers a conversion notice. The Threshold Price for 5E’s right to convert the Notes decreases to 150% after the twenty-four (24) month anniversary of the Closing Date and on or before the thirty-six (36) month anniversary of the Closing, and 130% at any time after the thirty-six (36) month anniversary of the Closing Date. 5E expects to use the net proceeds from the transaction for general corporate purposes, including but not limited to the further operation of its SSBF and the development of its larger-scale Fort Cady Project.
Additional information regarding the Investment is included in a Form 8-K that will be filed with the U.S. Securities and Exchange Commission. BofA Securities acted as 5E’s placement agent and Winston & Strawn LLP and Baker & McKenzie LLP acted as legal advisors to the Company. Shearman & Sterling LLP acted as legal advisor to BofA Securities. Kirkland & Ellis LLP acted as legal advisor to Bluescape.
Project and Company Update
Construction related activities for the SSBF are progressing as planned with more than 54,000 hours recorded on-site in 2022. Recent progress includes purchase and delivery of long lead item equipment and materials, personnel and resource additions, pad site and foundation development, and drilling and completing all monitoring and production wells that will supply the facility. We continue to target mechanical completion of the SSBF in CQ4 2022 and will provide project updates in a new Project Status section on our website.
We have continued to focus on developing commercial partnerships as key consumers of boron and lithium globally seek to manage a supply constrained environment. We continue to see strong increases in boron prices, with average boric acid prices up more than 50% during CQ1 2022, as compared to average prices in 2020 and 2021. We recently executed a Letter of Intent with Corning Incorporated (NYSE: GLW), a Fortune 300 company and one of the largest technical glass manufacturers in the world, and are currently in discussions with other customers who are similarly interested in ensuring domestic supply of boron and lithium.
Our government relations activities have also accelerated after updating our project scope to focus on boron specialty and advanced materials and lithium. We believe these advanced materials offer incremental value-in-use to customers and the U.S. government given their use in critical decarbonization and military applications, scarcity in resource, and predominantly imported supply.
About 5E Advanced Materials, Inc.
5E Advanced Materials, Inc. (Nasdaq: FEAM) (ASX: 5EA) is an exploration stage company focused on becoming a vertically integrated global leader and supplier of boron specialty and advanced materials, complemented by lithium production capabilities. Our mission is to become a supplier of these critical materials to industries addressing global decarbonization, food production, and domestic security. We anticipate 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. Our 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. Our 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, and we intend to leverage this asset once commercially operational to internally supply our proposed downstream advanced material development activities over time.
Forward Looking Statements and Disclosures
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 regarding our future expectations, plans and prospects for the Company, and the planned offering. Words such as “anticipates,” “estimates,” “expects,” “projects,” “forecasts,” “intends,” “plans,” “will,” “believes” and words and terms of similar substance used in connection with any discussion generally identify forward-looking statements. These forward-looking statements are based on management’s current expectations and beliefs about future events and are inherently susceptible to uncertainty and changes in circumstances. Various factors could adversely affect the Company’s operations, business or financial results in the future and cause the Company’s actual results to differ materially from those contained in the forward-looking statements. For additional information regarding these various factors, you should carefully review the risk factors and other disclosures in the Company’s amended Form 10 filed with the U.S. Securities and Exchange Commission on March 7, 2022, and its Form 10-Q filed with the SEC on May 12, 2022, as well as the latest risk factors described in the Form 8-K filed on or about the date of this press release. Additional risks are also disclosed by 5E in its filings with the 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.
