American Resources Corp (NASDAQ:AREC) announced that it has secured a $5 million inventory line of credit from Old National Bank to support the procurement of rare earth and critical mineral feedstocks.
The company said the facility will allow it to finance the acquisition of end-of-life materials, manufacturing scrap, ores, and concentrates, which will be processed into mineral feedstock for use by its minority-owned refinery subsidiary ReElement Technologies.
ReElement specializes in the separation, purification, and refinement of rare earth and critical minerals into high-purity products for domestic supply chains.
American Resources noted that it and ReElement have demonstrated the ability to extract and concentrate elements such as neodymium, praseodymium, dysprosium, terbium, gadolinium, and yttrium from various sources, including coal-based byproducts, recycled magnet material, lithium-ion battery waste, and other manufacturing scrap.
It also said it controls more than 120 million tons of pre-mined, fully permitted coal-based byproducts across Kentucky and West Virginia. According to the company, this resource base, combined with existing infrastructure, supports its goal to fast-track the production of rare earth concentrates for conversion into refined oxides.
"This collaboration with Old National Bank provides us with the liquidity and flexibility to accelerate our feedstock acquisition strategy and expand the material entering ReElement Technologies' refining platform," American Resources chief financial officer Kirk Taylor said in a statement.
"Old National's long-standing commitment to supporting regional growth and innovative industries aligns directly with our mission to build a secure, sustainable and globally competitive critical mineral supply chain within the United States."
Sandy Miller, senior director of business banking at Old National Bank, said the partnership would empower American Resources to pursue innovative and responsible rare earth processing.
"Supporting business growth is vital to building stronger, more vibrant communities, and we're proud to play a role in helping businesses expand and succeed,” Miller said.