American Resources to raise $30.1M from registered direct offering

American Resources Corporation (NASDAQ:AREC) is set to raise around $30.1 million gross in a registered direct offering.

Kingswood Capital Markets, division of Benchmark Investments Inc, is acting as the exclusive agent for the offering.

READ: American Resources achieves 99.5% purity of rare earth element neodymium from waste magnets

AREC struck a purchase agreement with certain institutional investors for the issue and sale of 8.6 million shares and 4.3 million warrants to buy up to 4.3 million shares, priced at the market under Nasdaq rules.

The warrants will be exercisable immediately upon issue and have an exercise price of $3.50 per share. They will expire five years from the date of issue.

The company is focused on the extraction and processing of metallurgical carbon, which is used in steelmaking, critical and rare earth minerals for the electrification market, and reprocessed metal to be recycled.

It has a growing portfolio of operations located in the Central Appalachian basin of eastern Kentucky and southern West Virginia.

Earlier today (June 7), it announced that, in conjunction with sponsored research partner Purdue University, it had successfully achieved a high purity of the rare earth element (REE) – neodymium (Nd).

Through the recycling of waste permanent magnets, American Resources said it was able to separate, isolate, and purify the inherent neodymium to a 99.5% purity, a standard required for high-quality permanent magnet manufacturing.

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Story by ProactiveInvestors