Central Appalachian-focused American Resources said its American Carbon subsidiary has entered into a binding letter of intent to sell certain assets associated with the Deane Mining complex in eastern Kentucky for $20.6 million.
The sale “will further position American Carbon as a low-cost, streamlined, and pure play growth platform in the metallurgical carbon industry,” said Mark Jensen, CEO of American Resources.
The structure of the transaction is $1 million in cash upfront; $500,000 quarterly cash payments for a total cash consideration of $11.5 million; and the assumption and replacement of approximately $9.1 million in environmental reclamation bonds.
“We remain steadfast on monetizing our unique carbon platform through either production, leases or sales while also retaining our ability to produce and monetize rare earth and critical mineral concentrates from any of our deposits, which can then be sold to ReElement Technologies for further separation, purification and refinement,” said Jensen.
“We look forward to progressing forward with this sale and providing further updates as we advance on all fronts over the near and medium term.”
American Resources acquired the Deane Mining complex in December 2015 from Rhino Resources Partners.
Source: American Resources