Agreement will help reduce discharge of methane gas that was created by prior mine operators
No capital investment required by the Company will result in improved safety of the mine as American Carbon works towards its restart
FISHERS, IN / ACCESSWIRE / July 2, 2024 / American Resources Corporation (NASDAQ:AREC) ("American Resources" or the "Company"), an innovative supplier of rare earth and critical elements, carbon and advanced carbon materials to the infrastructure and electrification marketplaces, today announce that its subsidiary, McCoy Elkhorn Coal LLC, has entered into an agreement to allow a third party to capture and process both coal bed methane (CBM) and coal mine methane (CMM) that is present and has been accumulating within the prior, sealed mining works within the Company's Mine #15 underground mine located in Pike County, Kentucky.
This agreement is expected to generate revenues for the Company's control of existing surface rights and from certain old mine works from the Mine #15 permit. With the removal of methane from within parts of Mine #15, is also anticipated to improve the operating safety and cost structure of Mine #15 as American Carbon Corporation, the parent company of McCoy Elkhorn Coal, evaluates restarting certain metallurgical carbon operations at and around the McCoy Elkhorn mining complex.
Mark Jensen, Chairman of American Resources stated, "As most of our shareholders know, since American Resources acquired our mining assets and surface control rights, we have placed a huge emphasis on environmental stewardship and safety improvement when compared to the legacy companies from which we acquired these assets. Today, we are excited to continue that progress through this agreement that produces high-margin revenues for our American Resources Corporation investors at no capital outlay required by the Company through the monetization of credits available for methane capture and processing at our McCoy Elkhorn Mine #15 property, which was historically discharged into the atmosphere. Our American Carbon division is in the process of being spun off from the parent company of American Resources Corporation in order for the company to focus on the restart of several of our high quality metallurgical carbon mining operations, and is actively working with industry partners to restart Mine #15, and other met carbon assets, including our series of Carnegie mines at Mcoy Elkhorn, specifically. This agreement to capture the methane will position Mine #15 as a safer, lower cost and more productive mine as its prepares to restart production. Additionally, this new revenue stream and agreement will be one of many similar assets we'll look to build at American Resources Corporation to enhance cash flow and asset value for investors once we spin off American Carbon, ReElement Technologies and American Metals to our underlying investors. We look forward to sharing additional information on the progress of this agreement, including magnitude of potential returns to our investors, as it becomes available.
About American Resources Corporation
American Resources Corporation (NASDAQ:AREC) 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.
Investor Contact:
JTC Team, LLC
Jenene Thomas
833-475-8247
arec@jtcir.com
RedChip Companies Inc.
Robert Foley
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
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