American Resources Corporation (NASDAQ:AREC) is set to buy rare earth element and carbon technology firm Energy Technologies Inc for cash and shares to boost its rare earth capabilities.
Founded in Tennessee in 1994, ETI is focused on clean energy initiatives, infrastructure operating efficiency, and rare earth and battery metals extraction.
"The first mile of extraction, or capturing, rare earth and battery metal concentrates from any feedstock is key to being economical," said Mark Jensen, CEO of American Resources.
"What we've seen in the latest technology implemented by ETI is a game-changer, given it can analyze and separate rare earth and battery metals feedstocks in real time and in a very low-cost method at the initial point of extraction.
"In the latest project, we have seen ETI's technology increase the concentration of targeted material by approximately 5x right at the initial collection point. This added efficiency results in less time, energy, labor, chemicals and wear and tear on the overall process. Being able to take a lower concentrated reserve and increase the concentration five-fold using this technology is a huge savings and is the key to making carbon-based feedstocks in the rare earth space economically viable."
Jensen noted that AREC had been working with the Energy Technologies team, led by David Swindell, for the past several years.
READ: American Resources Corporation increases specialty carbon order book at record prices
"Most recently, we've been part of a U.S. Department of Energy Federal Demonstration Partnership award, led by ETI, for the analyzing and sorting of mineral-rich resource feedstock in a support role," he told investors.
Swindell said of the deal: "The ability to join the team and have access to their internal resources and capabilities, in combination with our patented technologies and existing customer base, we believe will maximize the shareholder value of the combined organization."
It is expected that the team at ETI will continue in their current roles to help continue to grow the business, while each ETI, American Resources, and American Rare Earth leverage the operations, assets, and talent of the other respective businesses to "propel future innovation and growth," said the company.
ETI designs, builds, and tests all of its products in its Maryville facility, and installs and maintains this equipment worldwide. ETI analyzers are currently installed in North America, Europe, Asia, and Australia, with support provided through both on-site visits and secure connections to the running equipment.
American Resources is a next-generation, environmentally and socially responsible supplier of high-quality raw materials to the new infrastructure market.
Contact the writer at giles@proactiveinvestors.com