Joby Aviation closes $591 million stock offering with full underwriter option
FISHERS, IN - American Resources Corporation (NASDAQ:AREC), a micro-cap company with a market capitalization of $42.59 million, has announced the successful extension of a bond purchase agreement to further develop its Kentucky Lithium LLC (KYL) complex. The agreement with a sole institutional investor extends $150 million in Kentucky Industrial Building Revenue Bonds, Series 2024, and supports the expansion of the KYL facility, which is focused on producing battery-grade lithium and refining rare earth oxides. According to InvestingPro data, the company currently operates with a significant debt burden, which could impact its ability to service interest payments.
The KYL complex, located near Kite, Kentucky, is poised to initially produce 15,000 metric tons per year of lithium carbonate or lithium hydroxide, alongside other critical minerals essential for sectors like defense and semiconductors. These materials are sourced from regional mining waste in Appalachia. This expansion comes as the company faces significant operational challenges, with InvestingPro data showing a 98.13% revenue decline in the last twelve months and negative EBITDA of $23.16 million. For detailed analysis of AREC’s financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro. ReElement Technologies Corporation, a subsidiary of American Resources, utilizes patented chromatography technology to refine these critical elements.
The facility is designed to be among the lowest in carbon footprint for critical mineral purification and refining operations. It incorporates solar energy and battery storage to minimize environmental impact. Additionally, the KYL complex is being developed on a former coal mining site, repurposing existing infrastructure to reduce build time and environmental impact while providing employment opportunities for the local workforce.
Kirk Taylor, CFO of American Resources and ReElement Technologies, stated that the bond agreement extension aligns with the objectives of a recent Presidential Executive Order to increase American mineral production. The company’s technology is highlighted for its versatility and scalability, which could offer economic returns for investors.
The KYL facility employs Ligand Assisted Displacement (LAD) chromatography for the separation and purification of rare earth and critical elements. This process is noted for being more environmentally safe and cost-effective compared to conventional solvent-based extraction methods. It is designed to be adaptable to various feedstocks and production scales, offering benefits such as lower capital expenditures and the elimination of toxic solvents.
American Resources Corporation, through its subsidiary ReElement Technologies, is focused on creating a circular supply chain for critical and rare earth elements by recycling end-of-life products and utilizing coal-based waste streams. This approach aims to support the growing demand for magnet and battery metals necessary for the energy transition industry. Financial metrics from InvestingPro indicate the company faces near-term liquidity challenges with a current ratio of 0.23, suggesting short-term obligations exceed liquid assets. InvestingPro subscribers have access to over 15 additional key insights and metrics that could help evaluate the investment potential of AREC.
This press release contains forward-looking statements, and readers are cautioned that such statements involve risks and uncertainties that could cause actual results to differ materially from those projected.
The information in this article is based on a press release statement.
In other recent news, American Resources Corporation has made significant strides in enhancing its production capabilities and securing strategic contracts. The company, through its subsidiary ReElement Technologies, has commissioned new equipment to boost its rare earth oxide production at its Noblesville, Indiana facility. This expansion enables the production of high-purity rare earth oxides such as neodymium and dysprosium, utilizing advanced chromatographic separation technology that is both cost-effective and environmentally friendly.
Additionally, American Resources has entered a tolling agreement for refining antimony ore, which is expected to generate over $29 million in annual revenue. This contract marks a crucial step in addressing the global shortage of refining capacity for critical minerals, further emphasized by recent geopolitical trade tensions. The company has also shifted its focus towards utilizing coal tailings as a feedstock for producing heavy rare earth oxides, a resource that is currently in short supply globally.
ReElement Technologies has developed a method to economically refine coal waste concentrates, turning impurities into valuable byproducts. This innovative approach aligns with American Resources’ strategic move to aggregate and process mine waste across its extensive land holdings. Furthermore, American Resources has initiated the distribution of shares of ReElement Technologies and American Infrastructure Corporation, reflecting its ongoing commitment to developing efficient critical mineral operations.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.