Company's long-standing partner and customer has provided a non-dilutive financial commitment of $2.5 million to start the Carnegie 2 mine with top tier equipment and infrastructure
FISHERS, IN / ACCESSWIRE / May 18, 2022 / American Resources Corporation (NASDAQ:AREC) ('American Resources' or the 'Company'), a next generation and socially responsible supplier of rare earth and critical elements, carbon and advanced carbon materials to the new infrastructure and electrification marketplace, today announced that it has signed a carbon offtake agreement along with a non-dilutive financial commitment of $2.5 million with a long-standing customer and premier supplier of metallurgical carbon to the global steel and alloy metal marketplace, Integrity Coal Sales ('Integrity'), to start its Carnegie 2 mine. This incremental production will enable the Company to benefit from the current strength in the high vol met carbon market, aligning the risk and return for both Integrity and American Resources.
Mark Jensen, CEO of American Resources commented, 'Integrity Coal Sales has been a strong customer and partners of ours for a number of years, and we are focused on working together for everyone's success. Together, we're developing long term opportunities to expand low cost metallurgical carbon production to feed global steel demand for the infrastructure market. Finalizing the development of the Carnegie 2 mine coupled with the very strong market for high vol met carbon in the international markets provides a very attractive return on capital for our shareholders. This will further expand our production out of the McCoy Elkhorn complex while we are also expanding our Carnegie 1 mine production capabilities'.
High Vol metallurgical carbon is not burned for energy use. Instead, specific characteristics allow it to be blended with iron to make new steel. This quality of product is in high demand in the current market environment given many of the producers in the U.S. are producing from old mines that are expensive to operate and coming to end-of-life. American Resources is focused on mine plans and operations that are built to be low cost once ramped ranging from 20 to 40+ years while also making them safer and more productive operations. Post initial production ramp Carnegie 2 is anticipating adding $25 to $35 million in additional yearly revenue to the company's top line with attractive margins.
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 American Rare Earth LLC
American Rare Earth 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. American Rare Earth 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 arareearthcorp.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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