American Resources Corp (NASDAQ:AREC) said it has priced a $33.7 million private placement of its Class A common stock, issuing 9.48 million shares at $3.55 each.
The deal was made with several institutional investors and is expected to close on or about October 14, subject to customary conditions.
The company said the capital raised will strengthen its balance sheet and support the expansion of its upstream and downstream mineral operations. It has been positioning itself to meet growing global demand for critical minerals, while maintaining a low-cost operating structure aimed at improving efficiency and reducing industry risk.
American Resources, based in Indiana, is a developer in the critical mineral supply chain, focusing on materials used in steelmaking and electrification. Its operations span mining, refining, recycling, and processing of rare earth and battery metals through its affiliation with ReElement Technologies Corporation.