American Resources Corp (NASDAQ:AREC) announced that, through its minority holding in ReElement Technologies, it has entered into a Tokenization Services Agreement with SAGINT, a provider of digital asset infrastructure for supply chain traceability and market transparency.
The partnership aims to implement blockchain-based tokenization for critical and rare earth minerals. The collaboration will create verifiable digital warehouse receipts and traceable digital assets for refined critical and rare earth minerals produced by ReElement.
The platform is designed to provide end-to-end provenance from mine origin through refining, facilitate secure borderless financing, and ensure compliance with US regulatory requirements.
According to the company, the blockchain-based solution is intended to offer several benefits, including immutable real-time supply chain traceability, digitized warehouse receipts that reduce counterparty and geopolitical risk, and streamlined access to compliant capital markets. It also aims to provide enhanced transparency for government, defense, and infrastructure customers.
American Resources also said the initiative aligns with its mission to develop environmentally responsible and socially accountable domestic supply chains for high-purity raw materials essential to electrification, defense manufacturing, and emerging infrastructure projects.
Mark Jensen, ReElement Technologies CEO, described the agreement as a “pivotal advancement” both for the company and the entire domestic critical minerals sector.
"By integrating SAGINT's institutional-grade tokenization infrastructure, we are establishing the most secure, transparent and compliant critical mineral supply chain in the industry - an essential foundation for US energy independence and national security,” Jensen said.
“Furthermore, the SAGINT platform enables us to meet the specific requirements of our defense customers who demand verifiable traceability and transparency of products we sell them such as high-purity yttrium, gadolinium, germanium, samarium, and other rare earth and critical minerals."
Jacob Clayton, SAGINT CEO, added: “Our tokenization platform will enable ReElement to transform physical mineral inventories into digital assets that unlock efficient global trade and financing while maintaining the highest standards of compliance and security."
Under the agreement, American Resources will also take a strategic equity position in SAGINT to support its growth.
Shares of American Resources added 4.8% on the update.