Blueprint
Exhibit 99.1
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 costs
January 15, 2020 | Source: American Resources
Corporation
FISHERS, INDIANA / 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 Mine Consolidation Project’s goal has been to lower
PCR’s cost structure while enhancing the complex’s
productivity and to maintain or exceed the level of production from
the PCR complex. The divestiture of these non-core permits allows
American Resources to continue executing on its plan. The closing
of the permit sale is expected to close in 30 days and is subject
to certain conditions that must be met which the buyer is working
on.
American
Resources Corporation continues to focus on its growth objective by
efficiently leveraging its large number of core mining permits and
through identifying strategic, supplemental acquisitions. The
Company is committed to being one of the lowest cost operators in
the Central Appalachian basin (CAPP) and throughout all its carbon
mining, processing, and transportation operations.
About American Resources Corporation
American Resources Corporation is a supplier of raw materials to
the rapidly growing global infrastructure marketplace. The
company’s primary focus is on the extraction, processing,
transportation and selling of metallurgical carbon and pulverized
coal injection (PCI) to the steel industry. The company operations
are based in the Central Appalachian basin of eastern Kentucky and
southern West Virginia where premium quality metallurgical products
are located.
The company’s business model is based on running a
streamlined and efficient operation to economically extract and
deliver resources to meet its customers’ demands. By running
operations with low or no legacy costs, American Resources
Corporation works to maximize margins for its investors while being
able to scale its operations to meet the growth of the global
infrastructure market.
Website:
http://www.americanresourcescorp.com
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.
PR Contact:
Precision
Public Relations
Matt
Sheldon
917-280-732
matt@precisionpr.co
Company Contact:
Mark
LaVerghetta
317-855-9926
ext. 0
Vice
President of Corporate Finance and Communications
investor@americanresourcescorp.com
Source:
American Resources Corporation