American Resources said that the financing is priced at $3.55 per share of common stock and provides growth capital to advance American Resources’ initiatives in developing regional coal waste processing hubs.
American Resources Corp. (AREC) shares jumped 10% in early trading on Monday after the company announced that it had closed a $33 million common stock-only private investment in public equity (PIPE) transaction.
The company announced that the financing is priced at $3.55 per share of common stock, providing growth capital to advance American Resources’ initiatives in developing regional coal waste processing hubs for the extraction of critical minerals and rare earth elements.
Retail sentiment on American Resources remained unchanged in the ‘extremely bullish’ territory compared to a day ago, with message volumes at ‘high’ levels, according to data from Stocktwits.
The company stated that the PIPE transaction with nameplate investors aims to accelerate the commercialization of its rare earth element recovery strategy from existing coal waste resources, thereby unlocking the potential of the largest rare earth mine in the U.S.
“This PIPE financing provides the capital needed to commercialize and scale this model at a time when securing domestic supply chains for critical minerals is not only a commercial opportunity for American Resources and its holding company ReElement Technologies, but a national imperative,” said CEO Mark Jensen.
A bullish user on Stocktwits noted that the $33 million PIPE news could lead to a significant surge in the stock.
On Monday, other critical minerals stocks such as MP Materials, Trilogy Metals, and Critical Metals rose due to trade tensions between the U.S. and China. U.S. President Donald Trump announced plans to impose 100% tariffs on China in retaliation for the country’s restrictions on rare earth exports, according to a Reuters report.
However, President Trump softened his stance later, stating that it “will all be fine” in a post on Truth Social on Sunday. “Don’t worry about China, it will all be fine! Highly respected President Xi just had a bad moment. He doesn’t want Depression for his country, and neither do I. The U.S.A. wants to help China, not hurt it!!!” Trump said.
Shares of American Resources have gained 345% this year.
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