Exhibit 99.1
American Resources Corporation Provides Update on Perry County
Resources
Company preparing to restart metallurgical carbon mining and
processing operations at restructured complex
Perry County Resources restructured to be one of the lowest cost
and most innovative PCI and stoker operations in the United
States
July 6th,
2020 | Source: American Resources
Corporation
FISHERS, INDIANA / ACCESSWIRE / July , 2020
/ American Resources
Corporation (NASDAQ:AREC)
(“American Resources” or the “Company”), a
supplier of raw materials to the rapidly growing global
infrastructure marketplace, announced today progress to commence
mining operations at its Perry County Resources (“PCR”)
mining complex in Hazard, Kentucky.
American
Resources has been a consolidator and operator of quality
metallurgical carbon assets in the Central Appalachian basin
(“CAPP”) to serve customers in the steelmaking,
specialty alloy metals, and industrial marketplaces. Its
next-generation model and philosophy is to restructure existing,
legacy operations to better fit the modern-day marketplace by
eliminating legacy costs and liabilities to significantly increase
the overall efficiency and profitability of its complexes. PCR is
one of the Company’s five operating complexes within the
CAPP. The complex was acquired in September 2019 and has undergone
a major restructuring to eliminate an estimated $45 million of
annual expenses to fit the Company’s operating model and to
set the complex up for long-term viability and employment for the
community.
Mark Jensen, Chairman and CEO of American Resources Corporation
stated, “We are extremely proud of our team for the
coordination and efforts to prepare Perry County Resources to be
brought back online under our low-cost operating model. During
these unique and challenging times, we are extremely grateful that
we have stayed healthy and have advanced our operations to being
safer and more efficient. We believe the achievements have set the
Perry County operations up to be one of the lowest, if not the
lowest, PCI operations in the country that has production
capabilities of over 1.0 million tons per year.”
Production
at PCR has been idle during the COVID-19 outbreak to ensure
a safe working environment, to protect
the health of its employees and others, to mitigate the spread of
the virus, and to better navigate the global economic disruption.
During such time, American Resources has pulled forward a number of
environmental reclamation projects at PCR, that were created by the
prior operator, to further lower the Company’s holding costs
as well as implement additional efficiencies at its PCR and McCoy
Elkhorn subsidiaries.
In preparation to restart production at PCR, American Resources has
executed on the following initiatives:
1.
Installed
a new slope belt at PCR’s E4-2 deep mine
2.
Pumped
excess water from the E4-2 mine
3.
Prepared
staffing plans to match the E4-2 revised and more efficient mine
plan for long term stability
Additionally, the company has received approval to begin the
process of installing seals in the E4-2 mine to close off the
mine’s old works. The installation of seals at the mine will
cost approximately $150,000 to install but will significantly
reduce the mines operating costs per month by an estimated $60,000
to $90,000, and most importantly well make the mine a significantly
safer place to work for its employees.
“We’re really proud of the changes we made at PCR and
are extremely excited for our employees, customers, shareholders
and community to reintroduce PCR as one of the most innovative
metallurgical carbon complexes in the industry. We are currently
working on some additional innovative initiatives that are really
exciting and that we hope to be able to announce to the market in
short order,” added Mr. Jensen.
American Resources anticipates restarting the E4-2 mine and PCR
complex within the next 45 days. Over the next twelve months, the
Company plans on filling approximately 140 positions at PCR with
the capability to expand over the next five years to over 211 long
term sustainable jobs for the community.
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About American Resources Corporation
American Resources Corporation is a supplier of high-quality raw
materials to the rapidly growing global infrastructure market. The
Company is focused on the extraction and processing of
metallurgical carbon, an essential ingredient used in steelmaking.
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 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 market 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 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
917-280-7329
matt@precisionpr.co
Investor Contact:
JTC
Team, LLC
Jenene
Thomas
833-475-8247
AREC@jtcir.com
Company Contact:
Mark
LaVerghetta
317-855-9926
ext. 0
Vice
President of Corporate Finance and Communications
investor@americanresourcescorp.com
Source:
American Resources Corporation
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