American Resources said its subsidiary American Carbon has entered into a letter of intent to sell its carbon mining assets to an undisclosed strategic party for the total consideration of $280 million.
The sale includes the assets of American Carbon’s McCoy Elkhorn Coal, Perry County Resources and Wyoming County Coal operating subsidiaries including certain debts and environmental reclamation bonds.
“As we have been reviewing various offers and opportunities for our carbon mining division, we have remained steadfast on maximizing the value of these assets under a variety of potential transaction structures,” said American Resources CEO Mark Jensen.
“We believe the asset base is one of the last remaining low cost, highly-scalable metallurgical carbon platforms left in the United States and believe the structure enables the company to benefit from its growth and cash return while aligning it with a highly strategic suitor to best position it within the global steelmaking industry.”
The letter of intent is non-binding and non-exclusive but American Resources said the transaction is expected to close before year end.
Source: American Resources