$45 million Tax-Exempt Industrial Development Bonds will fund the expansion and technological improvements to the existing metallurgical carbon processing facility as well as the integration and construction of new rare earth processing capacity
FISHERS, IN / ACCESSWIRE / June 9, 2023 / American Resources Corporation (NASDAQ:AREC) ('American Resources' or the 'Company'), a next generation and socially responsible supplier of raw materials to the new infrastructure and electrification marketplace, today announced that it has successfully closed its offering of $45,000,000 principal amount of West Virginia Development Authority Solid Waste Disposal Facility Revenue Bonds, Series 2023, for the Company's Wyoming County Coal ('WCC') complex located near the town of Oceana, West Virginia. The bonds hold an interest rate of 9% and a maturity date of June 8, 2038.
As previously stated by Senator Joe Manchin, Chairman of the U.S. Senate Energy and Natural Resources Committee, 'I've always said that innovation, not elimination, is key to securing our nation's energy and national security, and today's announcement is an example of just the type of innovation that will help ensure the United States remains a global energy leader. WCC's new mines and processing expansion will support over 100 jobs in the region once reopened. This complex will produce and process the metallurgical coal that provides the horsepower we need today alongside the rare earth elements necessary to build the advanced energy technologies of the future that our country needs. These mines and expanded metallurgical coal processing will make sure that West Virginia remains at the forefront of American steel manufacturing while building a new domestic supply chain of critical minerals that reduce our dependence on China and other nations that don't share our values. Our country can produce these materials cleaner than anywhere else in the world, and West Virginians are more than up to the job.'
Mark Jensen, Chairman and CEO of American Resources Corporation, said, 'This is a monumental event for our business, which represents the largest financing we have closed to date, enabling the implementation of high value innovation around the critical and rare earth element marketplace. Once operational our technology around producing rare earth and critical mineral concentrates can be licensed out to third parties all throughout the world to cost effectively produce feedstock concentrates that can be refined at our ReElement refining facilities to produce battery and magnet grade feedstocks. We are thankful for the hard work of the Hilltop Securities team, the state of West Virginia and the overall deal team that worked diligently to get this financing completed to be a part of the supply chain for high demand elements that can be used for national security purposes and high value applications. We look forward to working with Hilltop and the rest of the team on additional innovative financing around our technology and operations.'
The WCC complex is strategically located within one of the last substantial mid-volatile metallurgical carbon deposits and, with direct rail access, provides favorable transportation logistics to the United States' east coast ports. Additionally, WCC is surrounded by a number of high-value metallurgical carbon reserves and mining sites that would otherwise be considered 'stranded' without access to the WCC processing and logistics complex. The Company's focus will initially be to bring two new underground mines into production which will produce an estimated 55,000 tons of carbon per month, with further expansion potential as the mines are developed. American Resources will also look to upgrade and expand WCC's carbon processing plant's capacity from its current 350 tons per hour rate, to approximately 700 tons per hour, while also incorporating the Company's innovative 'capture' and 'process' technology which will enable the facility to capture and process critical and rare earth elements from new carbon production and carbon-based waste sources to produce rare earth and critical element concentrates. The REE and CE concentrates produced will be transported to the Company's ReElement Technologies refining facility in Indiana for further separation and purification into forms needed for the manufacturing of modern goods and technologies.
American Resources continues to focus on running efficient streamlined operations in being a new-aged supplier of raw materials to the infrastructure and electrification marketplace in the most sustainable of ways, while also helping the world achieve its goals of carbon neutrality. By operating with low or no legacy costs and having one of the largest and most innovative growth pipelines in the industry, American Resources Corporation works to maximize value for its investors by positioning its large asset base to best fit a new-aged economy, while being able to scale its operations to meet the growth of the markets it serves.
About American Resources Corporation
American Resources Corporation is a next-generation, environmentally and socially responsible supplier of high-quality raw materials to the new infrastructure market. The Company is focused on the extraction and processing of metallurgical carbon, an essential ingredient used in steelmaking, critical and rare earth minerals for the electrification market, and reprocessed metal to be recycled. American Resources has a growing portfolio of operations located in the Central Appalachian basin of eastern Kentucky and southern West Virginia where premium quality metallurgical carbon and rare earth mineral deposits are concentrated.
American Resources has established a nimble, low-cost business model centered on growth, which provides a significant opportunity to scale its portfolio of assets to meet the growing global infrastructure and electrification markets while also continuing to acquire operations and significantly reduce their legacy industry risks. Its streamlined and efficient operations are able to maximize margins while reducing costs. For more information visit americanresourcescorp.com or connect with the Company on Facebook, Twitter, and LinkedIn.
About ReElement Technologies LLC
ReElement Technologies LLC is redefining how critical and rare earth elements are both sourced and processed while focusing on the recycling of end-of-life products such as rare earth permanent magnets and lithium-ion batteries, as well as coal-based waste streams and byproducts to create a low-cost and environmentally-safe, circular supply chain. ReElement has developed its innovative and scalable 'Capture-Process-Purify' process chain in conjunction with its licensed intellectual property including 16 patents and technologies and sponsored research partnerships with three leading universities to support the domestic supply chain's growing demand for magnet and battery metals. For more information visit reelementtech.com or connect with the Company on Facebook, Twitter, and LinkedIn.
Special Note Regarding Forward-Looking Statements
This press release contains 'forward-looking statements' within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks, uncertainties, and other important factors that could cause the Company's actual results, performance, or achievements or industry results to differ materially from any future results, performance, or achievements expressed or implied by these forward-looking statements. These statements are subject to a number of risks and uncertainties, many of which are beyond American Resources Corporation's control. The words 'believes', 'may', 'will', 'should', 'would', 'could', 'continue', 'seeks', 'anticipates', 'plans', 'expects', 'intends', 'estimates', or similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Any forward-looking statements included in this press release are made only as of the date of this release. The Company does not undertake any obligation to update or supplement any forward-looking statements to reflect subsequent events or circumstances. The Company cannot assure you that the projected results or events will be achieved.
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SOURCE: American Resources Corporation
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