American Resources Corporation establishes additional cash flow by leasing a non-core mining complex to a third-party operator

The Company’s Deane Mining Complex is a state-of-the-art facility whose operator expects 1.0 million tonnes of production in the first year
Multi-year lease allows the company to further monetize its large asset base and generate high-margin revenue
Lessee bears permit holding costs and agrees to pay American Resources the greater of $5.00 per ton or 5% of the gross selling price of coal processed

FISHERMEN, IN /ACCESSWIRE/April 29, 2022/ American Resource Company (NASDAQ:AREC) (“American Resources” or the “Company”), a next-generation, socially responsible provider of rare earths and critical elements, carbon and advanced carbonaceous materials for the emerging infrastructure and electrification market, announced today that it had entered into a multi-year agreement leasing the Deane Mining complex to a high-quality local third-party operator named Bluegrass Resources.

Mark Jensen, CEO of American Resources Corporation, said, “As one of the largest owners of mining infrastructure in our region, we are pleased to have entered into this lease and partnership with a highly reputable local operator. . Our Deane Mining complex is a top tier asset and idle complex, but is not included in our current operating plan, nor in the next phase of our plans for growth over the next five years Given the current strength in global markets carbon, this lease allows us to continue to capitalize on the current environment by monetizing our non-core assets, helping to keep the community functioning and delivering additional value to our shareholders. We have known the owners of Bluegrass Resources for several years and are confident in their ability to execute and create value for our shareholders and theirs.”

Jason McCoy, Director of Bluegrass Resources, said, “Our team has owned and operated many complexes over the years and, based on our extensive planning and due diligence, the Deane Mining complex is one of the best . The American Resources team has kept this complex pristine and coal-ready, allowing us to move quickly to bring the complex back into service and create jobs in the area. I and the rest of the Bluegrass Resources team are excited to start this complex and take advantage of this market structure and environment for our shareholders and for the shareholders of American Resources.”

The Company’s Deane Mining Complex, located in Letcher County, Kentucky, contains a state-of-the-art 800 ton per hour carbon processing facility, logistics infrastructure, including unit train loading of batch weight on the CSX rail, and abundant access to on-site and nearby mining capabilities. American Resources acquired the Deane Mining complex in December 2015 from Rhino Resources Partners LP and operated it until 2019.

Under the terms of the third-party lease, American Resources will receive an initial cash payment of $100,000 per month for the first two months, then a minimum of $20,000 per month until production begins. Once in production, American Resources will receive the greater of $5.00 per ton or 5% of the gross sales price generated by the Deane Mining complex, among other terms of the transaction. The lease term is for five years with renewable options thereafter.

American Resources continues to focus on running efficient, streamlined operations by being a new-age raw material supplier to the infrastructure and electrification market in the most sustainable way, while helping the world achieve its carbon neutrality objectives. 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 strives to maximize value for its investors by positioning its vast base of assets to better adapt to a new economy, while being able to adapt 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 for the new infrastructure market. The Company is focused on the mining and processing of metallurgical carbon, an essential ingredient used in the manufacture of steel, critical minerals and rare earths for the electrification market, and reprocessed metal for recycling. American Resources has a growing portfolio of operations located in the Central Appalachian Basin of eastern Kentucky and southern West Virginia, where deposits of premium metallurgical carbon and rare earth minerals are concentrated.

American Resources has established an agile, low-cost, growth-focused business model that provides a significant opportunity to expand its asset portfolio to meet growing global infrastructure and electrification markets while continuing to acquire operations and significantly reduce their industrial legacy 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 at Facebook, Twitterand LinkedIn.

About American Rare Earth LLC

American Rare Earth is redefining the way critical elements and rare earths are both obtained 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 than waste streams and coal-based by-products to create a low-cost, environmentally friendly circular supply chain. American Rare Earth has developed its innovative and scalable solution “Capture-Proceed-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 nation’s growing supply chain demand for metals for magnets and batteries. For more information, visit arareearthcorp.com or connect with the Company at Facebook, Twitterand 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 results, performance or industry achievements or results differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements. These statements are subject to a number of risks and uncertainties, many of which are beyond the control of American Resources Corporation. The words “believe”, “may”, “will”, “should”, “do”, “could”, “continue”, “seek”, “anticipate”, “plan”, “expect”, ” intends”, “estimates” or similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. All forward-looking statements included in this press release speak only as of the date of this release. The Company undertakes no 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 occur.

Contact PR

Precision PR
Matt Sheldon
917-280-7329
[email protected]

Investor contacts:

JTC Team, LLC
jenene thomas
833-475-8247
[email protected]

Companies RedChip Inc.
Todd McKnight
1-800-RED-CHIP (733-2447)
[email protected]

Company Contact:

Mark LaVerghetta
Vice President of Corporate Finance and Communications
317-855-9926 ext 0
[email protected]

THE SOURCE: American Resource Company

See the source version on accesswire.com:
https://www.accesswire.com/699454/American-Resources-Corporation-Establishes-Additional-Cash-Flow-Stream-By-Leasing-Non-Core-Mining-Complex-to-Third-Party-Operator

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