Business
American Resources Corporation Announced the Divestiture of Non-Core Operations and Reduction of Company Liabilities
Company sells idled mines at Perry County Resources as part of its restructuring plan to lower costsFISHERS, IN / ACCESSWIRE / January 15, 2020 / American
About this update from American Resources Corporation
[{"type":"text","content":"Company sells idled mines at Perry County Resources as part of its restructuring plan to lower costsFISHERS, IN / ACCESSWIRE / January 15, 2020 / American Resources Corporation (NASDAQ:AREC) (\"American Resources\" or the \"Company\"), a supplier of raw materials to the rapidly growing global infrastructure marketplace with a primary focus on the extraction, processing and distribution of metallurgical carbon to the steel and specialty metals industries, announced today that it has reached an agreement to sell certain non-core assets at its Perry County Resources (\"PCR\") subsidiary. The sale agreement consists of three idled permits associated with one underground mine and one surface mine located in Perry County, Kentucky near the town on Hazard. Total consideration for the assets being purchased by an undisclosed third party is approximately $1 million of cash and equipment.American Resources purchased the assets of Perry County Resources in September, 2019 as part of the court-supervised bankruptcy of Cambrian Holdings Company, Inc. The Company has since been restructuring the operating complex to lower its cost structure, streamline its operations and set it up for long term success. Additionally, the divestiture of the three permits reduces the Company's liabilities by shedding over $3 million of associated reclamation bonds.\"The sale of these non-core permits is very much consistent with our strategic restructuring plan and previously announced Mine Consolidation Project at Perry County Resources,\" stated Mark Jensen, Chairman and CEO of American Resources Corporation. \"We are excited that the idled permits are going to a company that most likely has them in their near-term mining plan. while our near-term plan does not include them. These specific divestitures allows us to reduce our holding cost and overall cost structure at PCR while our workforce can continue to focus on the efficiency and productivity of our main base-load mine at the complex.\"As previously stated, American Resources implemented its Strategic Plan of Action, which included its Mine Consolidation Project, immediately after the closing of the PCR acquisition. The Company's plan has been to consolidate equipment and infrastructure of the idled, non-core mine to further support and expand the productivity of the complex's main base-load mine. The Mi...