Business
American Resources Corporation Enters into a Binding Letter of Intent to Sell Assets Associated to Its Deane Mining Complex
Offer represents a $20.6 million enterprise value in the form of upfront cash, royalty interest and replacement of environmental reclamation bondsFISHERS, IN
About this update from American Resources Corporation
[{"type":"text","content":"Offer represents a $20.6 million enterprise value in the form of upfront cash, royalty interest and replacement of environmental reclamation bondsFISHERS, IN / ACCESSWIRE / August 3, 2023 / American Resources Corporation's (NASDAQ:AREC) (\"American Resources\" or the \"Company\") American Carbon subsidiary, a leading producer of high quality metallurgical and specialty carbon, has entered into a binding letter of intent to sell certain assets of American Carbon Corporation that are associated to the Company's Deane Mining Complex for a total enterprise value consideration of approximately $20.6 million. This consideration is payable to the Company in the form of an upfront cash payment, ongoing quarterly cash payments for up to $10.5 million, and the assumption of certain environmental reclamation bonds associated with related permits.Mark Jensen, CEO of American Resources Corporation commented, \"Last year, our Board of Directors and the newly formed Strategic Committee put forth a plan of action to unlock value for our shareholders, with the sale of non-core, Company assets being one of those action items. We are excited to get this letter of intent executed, which includes the commitment to closing the transaction along with the receipt of an initial upfront deposit. Furthermore, we have multiple other directives from our Strategic Committee that are intended to unlock Company value that remain in process, including the spin-off of ReElement Technologies LLC into a stand-alone public company, a spin-off of American Carbon Corporation, relocation or sale of our Perry County Resources' assets, a distribution of its ownership interest or public offering of Novusterra, Inc., and the completion of our SPAC, American Acquisition Opportunity, Inc. We continue to progress on each one of these action items, which we believe that each and collectively can represent a substantial increase in value of American Resources Corporation.\"Mr. Jensen added, \"The sale of the assets associated with the Deane Mining complex, which we view as a fantastic complex, but ultimately non-core to the direction of American Carbon Corporation, will further position American Carbon as a low-cost, streamlined, and pure play growth platform in the metallurgical carbon industry. We remain steadfast on monetizing our unique carbon platform through either produ...