Attached files
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| EX-99.2 - PRESS RELEASE - American Resources Corp | arec_ex992.htm |
| 8-K - CURRENT REPORT - American Resources Corp | arec_8k.htm |
Exhibit 99.1
American Resources’ Leased Third Party Mine Commences
Production
Non-core, idled mine leased to a third party in July 2020 has
commenced carbon production with long-term mine plan
Company will generate stable royalty stream from property with no
costs
November 17, 2020 | Source: American Resources
Corporation
FISHERS, INDIANA / ACCESSWIRE / November 17, 2020
/ American Resources
Corporation (NASDAQ:AREC)
(“American Resources” or the “Company”), a
next generation and socially responsible supplier of raw materials
to the new infrastructure marketplace, today announced that its
non-core, idled mine, leased to a
third-party operator this past July, has commenced carbon production via a long-term
mine plan. The lease on the underground mine located in Perry
County, Kentucky will generate a positive cash flow stream of $1.00
per ton of carbon sold from the mine as well as an additional $0.50
per ton of carbon sold that will be set aside for final
environmental remediation of the property in the
future.
Thomas Sauve, President of American Resources Corporation
commented, “We are extremely pleased that our lease partner
was successful in getting this mine into production. Their team put
significant effort into hitting their time frames which has now
resulted in substantial new job creation in the area, positive cash
flows from the permit to American Resources and an environmental
reclamation fund to ensure that post mining, the environmental
remediation will be completed properly and on time. With both core
and non-core permits within our portfolio, we hope to work with
other operators in the region that desire to lease our non-core
permits in a similar structure to maximize social impact,
shareholder returns and environmental impact in the
region.”
The leased mine was included as part of the Company’s
acquisition of Knott County Coal from Arch Coal (now Arch
Resources) in April 2016. Given American Resources’ focus on
the steel and infrastructure markets, the mine did not fit into the
Company’s core operating plans and provided the rationale to
lease to a third-party operator.
Additionally, American Resources did not charge any upfront or
minimum royalties associated with the lease agreement, which is
typical in the industry, to ensure that the lessee could maximize
the likelihood of success of getting the mine into production for
long term success. The lease structure better fits the current
markets and focuses on generating stable long-term cash flows for
the company while also creating jobs in eastern Kentucky, a region
that greatly needs them.
American
Resources Corporation is focused on running a streamlined and
efficient operation to economically deliver raw materials products
to meet its customers’ demands for a modern infrastructure
market. By operating with low or no legacy costs and having one of
the largest and most innovative growth pipelines in the industry,
American Resources Corporation works to maximize value for its
investors while being able to scale its operations to meet the
growth of the markets it serves.
About American Resources Corporation
American Resources Corporation is a supplier of high-quality raw
materials to the rapidly growing global infrastructure market. The
Company is focused on the extraction and processing of
metallurgical carbon, an essential ingredient used in steelmaking.
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 deposits are
concentrated.
American Resources has established a nimble, low-cost business
model centered on growth, which provides a significant opportunity
to scale its portfolio of assets to meet the growing global
infrastructure market while also continuing to acquire operations
and significantly reduce their legacy industry risks. Its
streamlined and efficient operations are able to maximize margins
while reducing costs. For more information visit
americanresourcescorp.com or connect with the Company on
Facebook,
Twitter, and
LinkedIn.
Special Note Regarding Forward-Looking Statements
This
press release contains “forward-looking statements”
within the meaning of the Private Securities Litigation Reform Act
of 1995. Forward-looking statements involve known and unknown
risks, uncertainties, and other important factors that could cause
the Company’s actual results, performance, or achievements or
industry results to differ materially from any future results,
performance, or achievements expressed or implied by these
forward-looking statements. These statements are subject to a
number of risks and uncertainties, many of which are beyond
American Resources Corporation’s control. The words
“believes”, “may”, “will”,
“should”, “would”, “could”,
“continue”, “seeks”,
“anticipates”, “plans”,
“expects”, “intends”,
“estimates”, or similar expressions are intended to
identify forward-looking statements, although not all
forward-looking statements contain such identifying words. Any
forward-looking statements included in this press release are made
only as of the date of this release. The Company does not undertake
any obligation to update or supplement any forward-looking
statements to reflect subsequent events or circumstances. The
Company cannot assure you that the projected results or events will
be achieved.
PR Contact:
Precision
Public Relations
Matt
Sheldon
917-280-7329
matt@precisionpr.co
Investor Contact:
JTC
Team, LLC
Jenene
Thomas
833-475-8247
AREC@jtcir.com
Company Contact:
Mark
LaVerghetta
317-855-9926
ext. 0
Vice
President of Corporate Finance and Communications
investor@americanresourcescorp.com
Source:
American Resources Corporation