American Resources Corporation
Under the Symbol:
American Resources Corporation Announces the Divestiture of Non-Core Operations and Reduction of Company Liabilities
Tuesday, September 25, 2018 11:30 AM
FISHERS, IN / ACCESSWIRE / September 25, 2018 / American Resources Corporation (OTCQB: AREC) is pleased to announce that they have entered into a permit transfer agreement with an unrelated party, for certain non-core idled operations within its Knott County Coal subsidiary. The divestment of the associated permits will result in the reduction of $2.86 million of reclamation bonding and over $900,000 of estimated, unaudited asset retirement obligations (ARO) from the company's balance sheet. The permits comprised in the transfer agreement were included as part of the acquisition of ICG Knott County in April of 2016 from Arch Coal and are considered non-core to American Resources' overall operations throughout the Central Appalachian Basin.
"The divestment of these non-core permits is part of our continued, ongoing evaluation of assets and efforts to strengthen the company's balance sheet," stated Mark Jensen, Chief Executive Officer of American Resources. "We are constantly looking for opportunities to improve our balance sheet to help support our growth objectives while refining our business model."
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 CAPP and throughout all its coal mining, processing, and transportation operations.
About American Resources Corporation
American Resources Corporation is engaged in diversified energy services including mining, processing, and logistics, with a primary focus on traditional energy sources such as coal. American Resources Corporation plans to expand its business by continuing to develop its currently leased properties and further expanding its processing and logistics business, and through the pursuit of strategic acquisitions.
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Anthony D. Altavilla, President
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Mark LaVerghetta, Vice President of Corporate Finance and Communications [email protected]
Special Note Regarding Forward-Looking Statements
This press release contains forward-looking statements. 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 the control of the Company. 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.
SOURCE: American Resources Corporation