American Resources Corp. has reached an agreement to sell certain non-core assets at its Perry County Resources subsidiary. The sale agreement consists of three idled permits associated with one underground mine and one surface mine located in Perry County, Kentucky, near the town of Hazard. Total consideration for the assets being purchased by an undisclosed third party is approximately $1 million of cash and equipment, according to the company.
American Resources purchased the assets of Perry County Resources in September as part of the court-supervised bankruptcy of Cambrian Holdings Co. Inc. The company has been restructuring the operating complex to lower its cost structure, streamline its operations and set it up for long-term success, the company said. Additionally, the divestiture of the three permits reduces the company’s liabilities by shedding more than $3 million of associated reclamation bonds.
“We are excited that the idled permits are going to a company that most likely has them in their near-term mining plan, while our near-term plan does not include them,” Chairman and CEO of American Resources Mark Jensen said.
