American Resources Corporation
Under the Symbol:
American Resources Corporation Announces Closing of Synergy Coal Acquisition
Thursday, November 8, 2018 10:25 AM
FISHERS, IN / ACCESSWIRE / November 8, 2018 / American Resources Corporation (OTCQB: AREC), a mining company focused on the extraction, processing, transportation and selling of metallurgical and premium thermal coal, is pleased to announce the closing of its previously-announced acquisition of all the assets of Synergy Coal, LLC located in Wyoming County, West Virginia. The acquisition includes all coal mining permits (including the associated reclamation bonds), governmental approvals, a coal processing facility, a rail loadout, over one thousand acres of mineral and surface ownership, and all other assets owned by Synergy Coal. In a substantially all-stock transaction, American Resources will pay 1,727,273 common equity shares valued at approximately $22.1 million, based on yesterday's closing stock price of $12.79 per share to acquire the assets. The finalization of this deal provides American Resources with its fourth operating hub within the Central Appalachian coal region, and its first in the state of West Virginia. American Resources will operate the metallurgical coal complex as a newly-formed, wholly-owned subsidiary called Wyoming County Coal LLC.
"We are very pleased with the timely closing of this acquisition and look forward to integrating and expanding Wyoming County Coal into our portfolio of metallurgical coals under our efficient, low-cost operating strategy," stated Mark Jensen, Chief Executive Officer of American Resources Corporation. " The addition of the mid-vol quality coal will both enhance our product offering to our customers and provides another attractive growth platform for our shareholders.
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 a mining company focused on the extraction, processing, transportation and selling of specialty coal qualities serving the metallurgical, industrial, pulverized coal injection (PCI), and premium thermal coal markets. The company is primarily focused on the Central Appalachian coal basin of eastern Kentucky and south-western West Virginia.
The company's business model is to capitalize on the changing coal markets to redefine how to create efficient coal mining operations to thrive and prosper in an industry that has less scale and production. By adjusting its operations to fit the market, American Resources Corporation is flexible and dynamic to adjust rapidly to expanding and contracting coal markets.
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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