American Resources Corp. announces organic expansion plans
American Resources Corporation announced its organic metallurgical coal production expansion project, following the company's recent financing, that is expected to increase its metallurgical coal production from the company's McCoy Elkhorn Coal complex. This plan will focus on upgrading the company's equipment at its various mines and the processing facility to increase efficiencies and expand production. As part of this effort, the company has recently closed on an equity financing in the gross amount of approximately $3.8M, which will be used primarily for accretive organic expansion. American Resources Corporation expects the capital to be used in an accretive manner to increase production at the company's highest-margin metallurgical mines. American Resources will complete converting one of Mine #15's two operating single sections to a full super section. The company will be utilizing equipment purchased earlier this year and once fully implemented, will incrementally increase production by approximately 12,000 salable tons per month to a total of 30,000 salable tons per month during the fourth quarter. After restarting production at the Carnegie 1 mine this past May, American Resources will continue to implement its previously announced, production expansion plan. The company continues to expect Carnegie 1 to yield a production range of 16,000 salable tons per month once fully implemented later this fall with ability to expand it to 30,000 tons per month in the first quarter of 2020. The Carnegie 2 mine enables American Resources to access the same block of metallurgical coal within the Lower Alma coal seam as their Carnegie 1 mine. The company has been developing the mine over the past year with the expectation to complete development and begin production in the fourth quarter of 2019. Once producing, American Resources expects Carnegie 2 to supplement the production of Carnegie 1 by an estimated additional 8,000 to 10,000 salable tons per month.