American Carbon Corporation changes name to American Infrastructure Corporation
Company signs lease on McCoy Elkhorn complex reducing operating risk with a near-term goal of restarting complex
Company to distribute 25% of its ownership in American Infrastructure Corporation as a special dividend on the previously announced date of August 9th
FISHERS, IN / ACCESSWIRE / August 7, 2024 / American Resources Corporation (NASDAQ:AREC) ("American Resources" or the "Company"), a next generation and socially responsible supplier of rare earth and critical elements, carbon and advanced carbon materials to the new infrastructure and electrification marketplace, today announced updates on its wholly owned subsidiary, American Carbon Corporation.
Name Change to American Infrastructure Corporation
American Carbon Corporation has changed its name to American Infrastructure Corporation to reflect the Company's broader focus on producing high-quality raw material inputs to the global steel and infrastructure markets including metallurgical carbon and iron ore. As previously announced, the Company recently completed a strategic acquisition of a 51% ownership interest in a diversified mineral asset with a focus on iron ore, titanium and vanadium.
American Infrastructure Corporation Special Dividend and Public / Sale Process
The Company will be distributing 25% of its ownership interest in American Infrastructure Corporation on the previously announced distribution date of August 9, 2024 to its underlying shareholders of record as of May 27, 2024. Shareholders of record will still receive 1 share of American Infrastructure Corporation for every 4 shares of American Resources Corporation at the rate of distribution. The Company continues to work with potential merger partners, including public companies and special purpose acquisition companies ("SPAC''s"), operators, joint venture partners and potential acquirers of divisions as its best long-term option to maximize growth and value for its shareholders, as well for achieving listing requirements for national exchanges. The Company is in the process of completing its reaudit of its financials post upgrading its auditor with the goal of being a public company or selling divisions during the final part of the 2024 calendar year to unlock value for its shareholders.
Business Model / Operational Update
American Infrastructure's go-forward strategy remains focused on growth and consolidation while reducing operational risk by leasing out complexes to highly qualified operators. The Company's operational strategy is to reduce capital and operating risk by monetizing its current and future asset base by creating royalty and streamlining income from its controlled or owned asset base by partnering with operators that have decades of experience in the mining business to receive revenue-based royalty, streamlining or leasing revenue from such assets. American Infrastructure has recently signed a lease for its McCoy Elkhorn mining complex, located in Pike County, Kentucky, with the goal of restarting operations this year and receiving a top line royalty stream from the complex. The Company's McCoy Elkhorn complex is a state-of-the-art carbon processing and logistics hub focused on the production, processing and distribution of metallurgical carbon to the global steelmaking market. The Company's focus, with its contract operator, is to bring its Carnegie 1 and Carnegie 2 mines back online for the production of high-quality, high vol A and B carbon as well as its onsite Mine 15.
Additionally, the Company continues to develop its Wyoming County Coal mining complex in West Virginia supported by the closing of its $45 million tax-exempt bond last year. The Wyoming County Coal complex is focused on the production, processing and distribution of premium-quality, mid vol metallurgical carbon.
Tarlis Thompson, Chief Executive Officer of American Infrastructure Corporation, "I am excited that the board has given me the confidence to drive the business in the direction that I have proposed in terms of derisking operations and focusing on cash flow generation of the asset base. Furthermore, we continue to evaluate acquisition proposals of certain controlled assets while also preparing the business for its separation and public listing. We believe we control some of the lowest cost met carbon and iron ore assets in the regional market and have restructured these assets to make them attractive for operators to step and hit the ground running. We are excited to progress the business forward as a standalone business in the near future."
Mark Jensen, CEO of American Resources Corporation commented, "We remain focused on unlocking value and simplifying the message of our individual platform divisions that we have built over the last 9 years by separating the companies into standalone entities. Our board and team is moving as aggressively as possible despite the delays created by the need to upgrade and change auditors this year. We look forward to the balance of the year and the continued success of each of our divisions in the near term."
About American Resources Corporation
American Resources Corporation (NASDAQ:AREC) is a next-generation, environmentally and socially responsible supplier of high-quality raw materials to the new infrastructure market. The Company is focused on the extraction and processing of metallurgical carbon, an essential ingredient used in steelmaking, critical and rare earth minerals for the electrification market, and reprocessed metal to be recycled. American Resources has a growing portfolio of operations located in the Central Appalachian basin of eastern Kentucky and southern West Virginia where premium quality metallurgical carbon and rare earth mineral deposits are concentrated.
American Resources has established a nimble, low-cost business model centered on growth, which provides a significant opportunity to scale its portfolio of assets to meet the growing global infrastructure and electrification markets while also continuing to acquire operations and significantly reduce their legacy industry risks. Its streamlined and efficient operations are able to maximize margins while reducing costs. For more information visit americanresourcescorp.com or connect with the Company on Facebook, Twitter, and LinkedIn.
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 exprsed 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.
Investor Contact:
JTC Team, LLC
Jenene Thomas
833-475-8247
arec@jtcir.com
RedChip Companies Inc.
Robert Foley
1-800-RED-CHIP (733-2447)
Info@redchip.com
Company Contact:
Mark LaVerghetta
Vice President of Corporate Finance and Communications
317-855-9926 ext. 0
investor@americanresourcescorp.com
SOURCE: American Resources Corporation
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