American Resources Corporation (NASDAQ:AREC) revealed that it has received an unsolicited bid for the assets of its wholly-owned metallurgical carbon division, American Carbon, which included upfront cash, assumption of debt, and a scaling royalty structure totaling an implied enterprise value of about $260 million.
The supplier of raw materials to the rapidly growing global infrastructure market said the proposal, which included $12 million in cash over the first six months, assumption of certain debts plus a structured royalty stream over a 12-year period, was not accepted due to the duration and structure of the consideration payments.
“We believe the team behind the bid is first class and highly capable, but unfortunately there were a few considerations in their offer that provided uncertainty that the full value would be achieved,” American Resources Corp CEO Mark Jensen said in a statement.
“Given the strength and position of our metallurgical carbon assets at McCoy Elkhorn and Wyoming County, especially now with the closing of the $45 million tax-exempt bond, we remain focused on expanding production over the next two years through the production of high vol and mid vol metallurgical carbon,” he added.
American Resources noted that it remains committed to maximizing the value for shareholders including the sale, lease or expansion of production from its first-class metallurgical carbon assets.
As well, the company said it is continuing to pursue the spin-off of its wholly owned ReElement Technologies division and the growth of its American Metals division to support the expansion of the electrified economy.
American Resources focuses on the extraction and processing of metallurgical carbon, an essential ingredient used in steelmaking, rare earth minerals for the electrification market, and reprocessed metal to be recycled.
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