American Resources Corp (NASDAQ:AREC) CEO Mark Jensen talked with Proactive about the company’s latest milestone — securing a $200 million funding facility that fully capitalizes its ReElement Technologies division.
This strategic partnership, led by Transition Equity Partners, is expected to propel the company toward full-scale production of separated and purified rare earth oxides.
Jensen detailed that the capital will support production of up to 8,000 metric tons of oxides, 1,500 metric tons of yttrium and gadolinium, as well as germanium and gallium.
Highlighting the importance of strategic alignment, he described the investor relationship as focused on execution and value creation, rather than just financial terms.
He also discussed the critical role of elements like samarium, which is used in samarium-cobalt magnets for defense applications. With raw materials coming from Southeast Asia and growing customer demand, the company aims to meet market needs with 99.99% purity materials.
In addition, Jensen updated viewers on the Marion plant, which is expected to be operational by Q2. Over 75% of the equipment has already been acquired, and daily installations are ongoing, with plans to expand usable space to over 250,000 square feet.
Proactive: Welcome back inside our Proactive newsroom. And joining me now is Mark Jensen. He is the CEO of American Resources Corp. And Mark, it's great to see you again. Happy New Year to you.
Mark Jensen: Good to see you.
Exciting news after the company once again securing a $200 million facility to really make the growth happen — in a big way, in a short amount of time. So tell me a bit about this company you're working with and what this is going to do.
Yeah, absolutely. It’s just a phenomenal partnership. The $200 million for ReElement fully capitalizes the business to go to full scale — going to 8,000 metric tons of separated purified oxides, 1,500 metric tons of yttrium, gadolinium, and then germanium and gallium as well.
When we went out to capitalize the business, culture meant everything. Having an investor aligned with our goals was important — both for the defense industry and our commercial partnerships. Transition Equity fit that perfectly. Pat Eilers and his team are awesome people to work with — as strategic as they are investors.
Yeah, and that’s the part I want to get into — the strategic aspect. Because in the news release you mentioned this isn't just about capital, it's about strategy and involvement.
Yeah, 100%. We work with them daily — not about covenants and financial terms, but about business. It's about bringing value to the company. He's a patriot — the whole team is — and they're dedicated to US-first principles.
Even before closing the deal, he brought us the Uzbekistan tungsten deal for American Resources. He's invested in ReElement, and we’ll use ReElement for refining. But it’s all about execution. They open doors, make introductions, and bring value far beyond a traditional investor.
And another part of the news — the critical metals not being processed right now. The work you’re doing is filling a market void.
Absolutely. Samarium, for example, is used in samarium-cobalt magnets — the number one magnet used by the defense industry. We're expanding samarium processing. We’re bringing in ore from Southeast Asia that processes samarium, yttrium, gadolinium — even dysprosium and terbium — at large scale and low cost.
Yttrium and gadolinium are widely used in defense. We produce at 99.99% purity today. There's huge market demand, and we have a strong customer Rolodex. With the capital now secured, we’re already deploying funds and growing rapidly. This fully capitalizes ReElement’s domestic and international operations.
And lastly, on the Marion plant — you mentioned expanding capacity. What’s the infrastructure update?
Even before this capital and the OSC deal with the U.S. government, we acquired over 75% of the equipment going into Marion. The goal is to have it running in Q2 this year.
We’re already doing work there — our president is onsite today, doing pre-processing on magnet material. Equipment is arriving and being installed daily. There’s no sleep at the company right now — and that’s a good thing.
We’re also renovating the remaining 113,000 square feet to give us over 250,000 square feet of usable space. It’s a beautiful facility and community, and this industry belongs there.
Quotes have been lightly edited for clarity and style