American Clean Resources Group, Inc. (OTC: ACRG) and Energ4 Mining Company LLC have announced the creation of Nexus 7 Elements LLC, a joint venture in which ACRG will hold a 51% stake and Energ4 will hold 49%. The partnership is designed to commercialize Energ4’s proprietary CHIPS™ technology, which uses electrochemical and sonochemical processes to recover rare‑earth elements (REEs) and other critical minerals from a variety of U.S. feedstocks, including coal ash, fly ash, legacy coal dumps and mining tailings.
The JV will leverage ACRG’s existing toll‑milling infrastructure and processing hub network, allowing the technology to be deployed at scale within 12 to 18 months. ACRG’s CEO, Tawana Bain, said the collaboration “creates a scalable platform to help meet America’s demand for domestically sourced critical minerals” and that the partnership “strengthens national security and clean‑energy goals.” Energ4’s CEO, Trever Leamon, added that the joint venture “is about building plants, not science projects,” emphasizing the commercial focus of the technology.
ACRG’s financial position underscores the significance of the deal. In its most recent quarterly filing, the company reported a net loss of $12.3 million on revenue of $45.6 million, a 27% decline from the prior year, and a cash balance of just $3.1 million. The company also issued a going‑concern warning, citing limited liquidity and the need for additional financing. The Nexus 7 venture is therefore seen as a potential lifeline that could diversify ACRG’s revenue base beyond toll‑milling and smart‑water services.
The U.S. government’s critical‑minerals strategy, which seeks to reduce dependence on foreign (primarily Chinese) REE supply chains, provides a favorable backdrop for the JV. Energ4’s CHIPS™ technology can extract REEs from existing waste streams, avoiding the environmental and regulatory hurdles of new mining operations and contributing to the remediation of legacy energy sites.
Market reaction to the announcement has been positive. ACRG’s shares surged 152% over the week leading up to the announcement, trading just below their 52‑week high. Analysts cited the strategic importance of the partnership and the potential for a new, high‑margin revenue stream as key drivers of the rally, while also noting the company’s fragile financial footing.
In summary, the Nexus 7 Elements joint venture represents a strategic pivot for ACRG into the high‑growth critical‑minerals market, offers a technology that can unlock value from U.S. waste streams, and could provide a much‑needed revenue diversification for a company facing significant financial challenges. The deal’s success will hinge on the timely deployment of the CHIPS™ technology, the ability to secure sufficient capital, and the broader demand for domestically sourced REEs.
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