American Resources Corporation has secured a $5 million inventory line of credit from Old National Bank, a facility that will be used to purchase end‑of‑life materials, manufacturing scrap, ores and concentrates for its subsidiary ReElement Technologies. The credit line is intended to fund the procurement of feedstock that will be processed into high‑value rare‑earth elements such as neodymium, praseodymium, dysprosium, terbium, gadolinium and yttrium.
The move comes as American Resources reports a negative working‑capital position and limited cash reserves. In the most recent quarter, the company’s cash and cash equivalents were $3.2 million, down from $4.5 million a year earlier, while its current liabilities exceeded current assets by $1.8 million. The new credit line therefore provides a critical liquidity cushion that can be drawn upon to secure feedstock without further diluting equity or taking on additional debt.
ReElement Technologies, the company’s rare‑earth refining arm, uses patented chromatographic separation technology to extract and concentrate the elements listed above from a variety of sources, including coal‑based byproducts and recycled magnet material. By ensuring a steady supply of feedstock, the credit line supports ReElement’s goal of scaling operations to meet growing domestic demand for high‑purity rare‑earths, a key component of U.S. clean‑energy and defense supply chains.
The credit line also positions American Resources to pursue larger capital raises and operational milestones in the coming months. Management has indicated plans to raise additional equity or debt to fund the expansion of ReElement’s processing capacity and to support a planned partnership with the U.S. Department of Defense that could bring in up to $2 million in grant funding. The facility’s terms—interest rate, maturity, and covenants—were not disclosed, but the $5 million limit is expected to cover several months of feedstock purchases at current market prices.
CFO Kirk Taylor said the partnership with Old National Bank “provides the liquidity and flexibility needed to accelerate our feedstock acquisition strategy and expand the material entering ReElement’s refining platform.” Senior Director of Business Banking at Old National Bank, Sandy Miller, added that the bank is “pleased to support an innovative company that is advancing domestic rare‑earth processing.”
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