FISHERS, IN / ACCESSWIRE / August 4, 2019 / American Resources Corporation (NASDAQ:AREC), a supplier of raw materials to the rapidly growing global infrastructure marketplace, with a primary focus on the extraction, processing, transportation and distribution of metallurgical coal to the steel industry, announced today that it has participated in the bidding process for the assets and operations of BlackJewel’s eastern (central Appalachian) division and will be submitting a revised bid. In relation to this process, the following statement is from Mark Jensen, Chief Executive Officer and Chairman of the Board of American Resources Corporation:
“On behalf of American Resources Corporation, we are disappointed to not be initially chosen as the successful primary bidder to purchase the assets of Blackjewel in Kentucky, West Virginia and Virginia. As the qualified backup bid, we believe that our bid is the most comprehensive and competitive as it is the only bid to include the full payment of pre-petition employee compensation of Blackjewel and Revelation Energy for those workers in the central Appalachian division, resulting in approximately $3.65 million being paid to these workers in an expedited structure that would otherwise go unfunded. Our bid also accepts responsibility for more than $200 million in reclamation liability, which prevents that liability from falling to the taxpayers of these states, whereas the other bid only addresses a fraction of this liability. Should our company prevail, we will continue to operate a number of the mines and between the current mines and the redeployment of equipment and infrastructure to existing American Resources / Quest Energy mines, we are confident that the job creation would result in a vast majority of Blackjewel’s workforce being given the opportunity to be employed by our company. We are in the process of revising our bid to increase the amount of our offer, which would further increase our funding of reclamation bonding to ensure environmental compliance. We are hopeful that at tomorrow’s 10:00 a.m. ET hearing in Charleston, West Virginia, the Court will recognize our commitment and the comprehensive value of our bid in finding the best solution and outcome to the employees, the operations, the environment, and stakeholders, and declare us the successful bidder.”
For more information regarding American Resource Corporation bid, please see:
https://cases.primeclerk.com/blackjewel/Home-DownloadPDF?id1=MTE3NDUyMg==&id2=0
For more information regarding the competing bids and also where you can compare the assumed reclamation obligations (ARO):
https://cases.primeclerk.com/blackjewel/Home-DownloadPDF?id1=MTE3NDUyOA==&id2=0
About American Resources Corporation
American Resources Corporation is a supplier of raw materials to the rapidly growing global infrastructure marketplace. The company’s primary focus is on the extraction, processing, transportation and selling of metallurgical coal and pulverized coal injection (PCI) to the steel industry. AREC’s operations are based in the Central Appalachian basin of eastern Kentucky and southern West Virginia, where premium quality metallurgical products are located.
The company’s business model is based on running a streamlined and efficient operation to economically extract and deliver resources to meet its customers’ demands. By running operations with low or no legacy costs, American Resources Corporation works to maximize margins for its investors while being able to scale its operations to meet the growth of the global infrastructure market.
Website:
http://www.americanresourcescorp.com
Institutional/Retail/Individual Contact:
American Capital Ventures
Howard Gostfrand, President
305-918-7000 - Office
[email protected]
www.amcapventures.com
PCG Advisory
Adam Holdsworth
646-862-4607
[email protected]
www.pcgadvisory.com
Company Contact:
Mark LaVerghetta
317-855-9926 ext. 0
Vice President of Corporate Finance and Communications
[email protected]
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.
SOURCE: American Resources Corporation