ReElement Technologies secures $20 million equipment leasing facility

FISHERS, Indiana - ReElement Technologies Corporation, a portfolio company of American Resources Corporation (NASDAQ:AREC), has secured a $20 million equipment leasing facility from Maxus Capital Group, LLC, according to a press release statement issued Wednesday. The announcement comes as AREC’s stock has shown remarkable momentum, delivering a 393% return over the past year and currently trading at $2.09 with a market capitalization of approximately $177 million. According to InvestingPro analysis, the stock is currently trading above its Fair Value.

The non-dilutive capital will fund equipment purchases to expand production of rare earth oxides, lithium carbonate, and defense minerals at the company’s facilities in Marion and Noblesville, Indiana.

The financing will primarily support scaling operations at the Marion facility for large-scale production of rare earth oxides from magnets and lithium carbonate from LFP black mass, while also meeting near-term customer demand at the Noblesville location.

"Securing this financing marks another pivotal step forward for ReElement Technologies," said Kirk Taylor, CFO of ReElement Technologies, noting that the capital would help drive revenue growth.

The company’s technology uses a chromatographic separation and purification platform that processes recycled magnets, batteries, manufacturing scrap, mine waste, and virgin ores. According to the company, this approach reduces capital costs, operating expenses, chemical usage, and environmental impact compared to traditional solvent-based processing methods.

The equipment financing complements previously announced Department of Defense contracts and existing equity capital. ReElement’s efforts align with presidential executive orders on mineral independence and the Department of Defense’s 2027 mine-to-magnet objective.

Maxus Capital Group, headquartered in Cleveland, Ohio, specializes in providing equipment finance and leasing solutions to middle-market businesses across the United States.

In other recent news, American Resources Corporation has made several significant announcements. The company has regained compliance with Nasdaq’s minimum bid price requirement, as confirmed by a letter from Nasdaq stating that American Resources maintained a closing bid price of $1.00 or greater for 12 consecutive business days. Additionally, its subsidiary, ReElement Technologies Corporation, has been awarded $2 million by the Department of Defense to enhance domestic rare earth element refining capabilities. This funding aims to address challenges in sourcing allied raw materials and establishing a reliable industrial base for rare earth minerals in the United States.

ReElement Technologies has also entered a binding long-term supply agreement with Vulcan Elements to provide high-purity rare earth oxides for domestic magnet production. Under this agreement, ReElement will supply magnet-grade neodymium, neodymium-praseodymium, and dysprosium oxides. Furthermore, ReElement has launched a new urban mining-to-magnet rare earth supply chain, offering toll processing services for recycled rare earth magnets at competitive prices. The company will purify recycled magnets into high-purity oxides, including neodymium and dysprosium, at purities of 99.5% or greater. These developments highlight American Resources Corporation’s ongoing efforts to strengthen its position in the rare earth elements sector.

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