Pensana has recently completed its syndicated project funding led by Absa Bank Limited, and is advancing to production of high-quality, high-concentration MREC
ReElement is commercially producing magnet-, specialty- and defense-grade, separated rare earth oxides in the United States
FISHERS, IN / ACCESS Newswire / June 23, 2025 / American Resources Corporation (NASDAQ:AREC) ("American Resources" or the "Company"), along with its holding in ReElement Technologies Corporation ("ReElement"), a leading U.S. innovator in rare earth element (REE) and critical mineral refining, is pleased to announce the signing of a Memorandum of Understanding (MOU) with Pensana PLC ("Pensana"), a company developing the Longonjo rare earth project - one of the world's largest and highest-grade rare earth deposits - located in the Huambo district of Angola. The MOU outlines a framework for a long-term partnership that combines Pensana's world-class mineral resource with ReElement's industry-leading refining platform to create a globally competitive, sustainable, and independent rare earth supply chain.
Key terms of the MOU include:
A shared commitment to developing a collaborative partnership aimed at establishing a sustainable, non-China rare earth supply chain to meet the rising global demand.
A proposed offtake of up to 20,000 tonnes per annum of ultra-clean Mixed Rare Earth Carbonate (MREC) from the Longonjo mine over a five-year period, with pricing to be agreed.
Strategic cooperation between ReElement and Pensana to strengthen and secure the global rare earth value chain and explore additional joint opportunities.
Leverage of the Lobito Corridor in Angola for low-cost, efficient access to global export markets.
Integration of ReElement's advanced refining platform, which offers a high-throughput, low-waste, and cost-effective process to produce ultra-pure separated rare earth oxides.
Since 2023, ReElement has been refining rare earth materials commercially and for customer validation at its Noblesville, Indiana facility. The company continues to expand capacity, including major development at its large-scale Marion, Indiana supersite, to meet growing demand from U.S. and allied defense and commercial industries.
Mark Jensen, CEO and Chairman of ReElement, commented, "Our partnership and MOU with Pensana represents a major advancement toward building a true mine-to-magnet global rare earth supply chain. Securing mineral independence requires innovation, not imitation - and legacy solvent-based refining methods simply won't be competitive or scalable in the modern market. ReElement's multi-mineral refining platform is uniquely positioned to unlock this opportunity with efficiency, flexibility, and global collaboration. We are excited to begin working with Pensana immediately given their vast reserves and production capabilities in Angola, a region that is aligned with US interests in Africa."
Tim George, CEO of Pensana, added, "We're thrilled to begin our collaboration with ReElement. Both of our teams share a clear vision for establishing an efficient, scalable, and enduring supply chain for magnet-grade rare earths - critical to meeting the accelerating global demand."
The signing of this MOU marks another key milestone in Pensana's journey to deliver rare earth products into the global value chain and underscores the Company's commitment to building a resilient and sustainable supply network.
About Pensana PLC and the Longonjo Project
Pensana has spent over US$70 million over the past six years on exploration, technical and environmental studies on the Longonjo rare earth project in the Huambo district of Angola approximately 350 kilometers Southeast of the capital Luanda. The Company has successfully delineated a near surface JORC compliant reserve of 22 million tonnes grading 3.04% TREO containing 139,457 tones of NdPrO making it one of the world's largest and highest grade, undeveloped magnet metal rare earth deposits with a mine life of over 20 years. The electrification of motive power is arguably the biggest energy transition in history and needs rare earths for permanent magnets. Initial production will be 20,000 tonnes of a highly marketable clean MREC. A proposed second phase expansion will see production increase to 40,000 tonnes per annum of MREC representing around 5% of the world's production capable of being converted into permanent magnets for electric vehicles and offshore wind turbines. The Company is committed to developing the Longonjo mine to the very best international standards with the highest level of community engagement and has published a blueprint for sustainable rare earth development which is available on our website. The team's efforts were recognized in 2022 when Pensana received green bond assurance by S&P Green Bond Rating Agency CICERO and more recently were awarded a Gold Medal by EcoVadis, a leading sustainability ratings provider, placing it among the top 5% of the companies assessed.
About American Resources Corporation (NASDAQ: AREC)
American Resources Corporation is a leader in the critical mineral supply chain, developing innovative solutions both upstream and downstream of the refining process. The company and its affiliates focus on the extraction and processing of metallurgical carbon and iron ore, essential ingredients in steelmaking, as well as critical and rare earth minerals for the electrification market and recycled metals.
Leveraging its affiliation and former parent status of ReElement Technologies Corporation, a leading provider of high-performance refining capacity for rare earth and critical battery elements, American Resources is investing in and developing efficient upstream and downstream critical mineral operations. These operations include mining interests in conventional and unconventional sources, recycling, and manufacturing.
American Resources has established a nimble, low-cost business model centered on growth, which provides a significant opportunity to scale its portfolio of assets to meet the growing global infrastructure and electrification markets while also continuing to acquire operations and significantly reduce their legacy industry risks. Its streamlined and efficient operations are able to maximize margins while reducing costs. For more information visit americanresourcescorp.com or connect with the Company on Facebook, Twitter, and LinkedIn.
About ReElement Technologies Corporation
ReElement Technologies Corporation, a portfolio company of American Resources Corporation (NASDAQ:AREC), is a leading provider of high-performance refining capacity for rare earth and critical battery elements. Its multi-mineral, multi-feedstock platform technology focuses on the refining of recycled material from rare earth permanent magnets and lithium-ion batteries, concentrated ores and brines, as well as coal-based waste streams and byproducts to create a cost effective and environmentally-safe, circular supply chain. ReElement has developed its innovative and scalable "Powered by ReElement" process which collaboratively utilizes its exclusively licensed intellectual property within its partners' material processing flow sheets to more efficiently support the global supply chain's growing demand for magnet and battery-grade products. For more information visit reelementtech.com or connect with the Company on Facebook, Twitter, and LinkedIn.
Learn more about ReElement Technologies' process and technology here - Video.
Special Note Regarding Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks, uncertainties, and other important factors that could cause the Company's actual results, performance, or achievements or industry results to differ materially from any future results, performance, or achievements expressed or implied by these forward-looking statements. These statements are subject to a number of risks and uncertainties, many of which are beyond American Resources Corporation's control. The words "believes", "may", "will", "should", "would", "could", "continue", "seeks", "anticipates", "plans", "expects", "intends", "estimates", or similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Any forward-looking statements included in this press release are made only as of the date of this release. The Company does not undertake any obligation to update or supplement any forward-looking statements to reflect subsequent events or circumstances. The Company cannot assure you that the projected results or events will be achieved.
Investor Contact:
JTC Team, LLC
Jenene Thomas
(908) 824 - 0775
arec@jtcir.com
Media Inquiries:
Marjorie Weisskohl
703-587-1532
mweisskohl@allseasonspr.com
Company Contact:
Mark LaVerghetta
317-855-9926 ext. 0
investor@americanresourcescorp.com
SOURCE: American Resources Corporation
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