American Resources Corporation (NASDAQ:AREC) announced that it has acquired approximately 2,371 mineral acres, including nearly 10.1 million tons of mineral resources at its Perry County Resources (PCR) complex, alongside a consortium led by insiders and external partners.
The Fishers, Indiana-based supplier of raw materials to the rapidly growing global infrastructure market, said the acquisition gives it security and access to long-term recoverable reserves, the main underground access points for its E4-2 mine, exclusive surface rights related to its PCR complex, an opportunity to further reduce its operating cost structure, and growth potential for a E3-2 mine.
In a statement, American Resources President Thomas Sauve said: "Securing control of these reserves and the underground mainline entry points at the Perry County E4-2 mine illustrates our strong desire to protect our workforce and long-term opportunity for our company in the community and region. These mains are the control point to most of the economically viable mineral within the E4-2 mine and a majority of the near-portal mineral.”
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“With a majority of the competing mines in the area having to travel miles underground to access carbon reserves due to end of mine life and lack of invested capital, this strategic reserve base puts us into a very strong position competitively and highlights our recent restructuring efforts of the complex.”
Sauve noted that the group acquired the Perry County complex with the goal of making it the premier low-cost steel-making carbon mine and the mineral reserves put the group “one step closer” to hitting that objective.
American Resources said it currently employs over 127 men and women at Perry County and is “continually expanding its workforce” across its operations to drive innovation and meet the demands of the evolving infrastructure and electrification market.
The company is focused on the extraction and processing of metallurgical carbon, a key ingredient in steelmaking, rare earth minerals for the electrification market, and reprocessed metal to be recycled. American Resources has a growing portfolio of operations in the Central Appalachian basin of eastern Kentucky and southwest Virginia where premium quality metallurgical carbon and rare earth mineral deposits are concentrated.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
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