American Resources Corporation Acquires Operating Rights to PCI Carbon Surface Mine

Rhea-AI Summary

American Resources Corporation (NASDAQ:AREC) has acquired the operating rights to a PCI carbon surface mine to expand its McCoy Elkhorn Complex in Kentucky. This facility is projected to add 5,000 to 15,000 tons per month of production, providing critical high-quality carbon to meet the steel-making industry's demand. The operation is expected to enhance revenues starting in June 2022 and create 15 direct and indirect jobs in the local community. The deal involves no upfront capital payment, supporting the company's goal of sustainable growth and market positioning.

Positive

• Acquisition of PCI carbon surface mine expected to increase production by 5,000 to 15,000 tons per month.
• Projected revenue boost beginning June 2022.
• Creation of 15 new jobs in the local community.
• No upfront capital payment facilitates financial flexibility.

Negative

• None.

Facility Could Add 4,000 to 15,000 Tons per Month of Incremental Production to the Company's McCoy Elkhorn Complex

Acquisition Expected To Increase Revenues for Company Beginning in June

FISHERS, INDIANA / ACCESSWIRE / March 11, 2022 / American Resources Corporation (NASDAQ:AREC) ("American Resources" or the "Company"), a next generation and socially responsible supplier of rare earth and critical elements, carbon and advanced carbon materials to the new infrastructure and electrification marketplace, today announced that it has acquired the operating rights to a PCI carbon surface mine operation to further expand the production of their McCoy Elkhorn Complex in Pike County, Kentucky.

Thomas Sauve, President of American Resources Corporation commented, "We are excited to be able to bring incremental, near-term production opportunities to life given our vast asset base in the region. This operation is a low-cost opportunity with high quality product that will have the ability to serve our steel-making customers. We are putting a plan in place to bring this operation online over the next 60 days. This job will add an additional 15 direct and indirect jobs to the local community. Additionally, bringing this operation online in the current market will help feed the massive shortage in the supply of high-quality carbon while allowing us to capitalize on current market prices."

Carbon production from this operation will be transported approximately 15 miles to the Company's state-of-the-art processing facilities at its McCoy Elkhorn complex to be processed and shipped to customers. The quality of this operation is anticipated being sold into the PCI and specialty carbon markets. Once ramped, the Company anticipates the operation to produce between 5,000 to 15,000 tons per month. While the terms of the transaction were not disclosed there was no capital paid upfront as part of the transaction.

American Resources continues to focus on running efficient streamlined operations in being a new-aged supplier of raw materials to the infrastructure and electrification marketplace in the most sustainable of ways, while also helping the world achieve its goals of carbon neutrality. 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 by positioning its large asset base to best fit a new-aged economy, 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 next-generation, environmentally and socially responsible supplier of high-quality raw materials to the new infrastructure market. The Company is focused on the extraction and processing of metallurgical carbon, an essential ingredient used in steelmaking, critical and rare earth minerals for the electrification market, and reprocessed metal to be recycled. 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.

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 and electrification markets 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

RedChip Companies Inc.
Todd McKnight
1-800-RED-CHIP (733-2447)
Info@redchip.com

Company Contact:
Mark LaVerghetta
Vice President of Corporate Finance and Communications
317-855-9926 ext. 0
investor@americanresourcescorp.com

SOURCE: American Resources Corporation

View source version on accesswire.com:
https://www.accesswire.com/692650/American-Resources-Corporation-Acquires-Operating-Rights-to-PCI-Carbon-Surface-Mine

FAQ

What is the significance of AREC's acquisition of a PCI carbon surface mine?

The acquisition is significant as it will increase production capacity at the McCoy Elkhorn Complex, contributing to revenue growth and addressing market demand.

When can we expect revenue increase from the new operation at AREC?

Revenue is expected to increase starting in June 2022 due to the acquisition.

How many jobs will the new mine operation create for the local community?

The new operation is projected to create 15 direct and indirect jobs in the local community.

What is the production capacity expected from the newly acquired mine by AREC?

The production capacity is expected to be between 5,000 to 15,000 tons per month.

What are the financial implications of the acquisition for AREC?

The acquisition allows for increased production without upfront capital costs, potentially enhancing financial flexibility and profit margins.