American Resources enters binding LOI to sell certain assets of American Carbon

American Resources has entered into a binding letter of intent to sell certain assets of American Carbon Corporation that are associated to the Company’s Deane Mining Complex for a total enterprise value consideration of approximately $20.6 million. This consideration is payable to the Company in the form of an upfront cash payment, ongoing quarterly cash payments for up to $10.5 million, and the assumption of certain environmental reclamation bonds associated with related permits. The structure of the sale transaction is $1.0 million upfront, which includes an already received $200,000 deposit, $500,000 quarterly cash payments thereafter for a total cash consideration of $11.5 million, and the assumption and replacement of approximately $9.1 million in environmental reclamation bonds.