American Resources Corporation (NASDAQ:AREC) and its subsidiary American Carbon LLC have expanded a non-dilutive, traditional asset-backed credit line of $15 million that can be drawn upon to fund growth initiatives.
The expanded credit facility is a traditional loan secured by certain equipment of the company's American Carbon division, and carries a 36-month term bearing an effective initial interest rate of approximately 14.48%, the company said.
“It is important for our business lines to be set up to run independently as we embark on our growth-driven initiatives at both American Carbon and ReElement Technologies, and these financing structures enable us to do this while also being opportunistic on our growth opportunities,” American Resources CFO Kirk Taylor said in a statement.
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“Having this flexible capital in place also enables American Resources, as a whole, to opportunistically enact certain valuation creation initiatives that our specialty committee evaluates,” he added.
American Resources continues to focus on running a streamlined operation as a sustainable new-aged supplier of raw materials to the infrastructure and electrification marketplace, the company said.
By operating with low or no legacy costs and having one of the largest and most innovative growth pipelines in the industry, American Resources works to maximize value for its investors by positioning its large asset base to best fit a new-age economy, while being able to scale its operations to meet the growth of the markets it serves.
American Resources has a growing portfolio of operations located in the Central Appalachian basin of eastern Kentucky and southern West Virginia where premium quality metallurgical carbon and rare earth mineral deposits are concentrated.
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