American Resources, Vulcan Elements finalize supply deal for rare earth oxides

[neodymium is a magnetic chemical element with the symbol Nd, in solid state. It is part of the rare earth group, used in the technology industry]
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American Resources (NASDAQ:AREC [https://seekingalpha.com/symbol/AREC]) +23.6% pre-market Tuesday after announcing a binding, multiyear supply agreement [https://seekingalpha.com/pr/20204552-reelement-technologies-and-vulcan-elements-finalize-long-term-supply-agreement-for-rare-earth] with U.S.-based magnet manufacturer Vulcan Elements; financial terms were not disclosed.

Under the agreement, American Resources' (NASDAQ:AREC [https://seekingalpha.com/symbol/AREC]) ReElement Technologies subsidiary will supply magnet-grade high-purity heavy and light rare earth oxides - specifically neodymium, neodymium-praseodymium, and dysprosium - to support Vulcan's domestic rare earth magnet manufacturing operations.

ReElement's separation and purification platform uses chromatographic technology - a departure from traditional, highly polluting solvent-based methods.

"Our refining platform enables us to supply separated and purified rare earth oxides at costs comparable to Chinese producers - while being domestically sourced and sustainably processed," ReElement Technologies CEO Mark Jensen said, adding that the company has been selling oxides to Vulcan over the course of this year.

MORE ON AMERICAN RESOURCES

* Seeking Alpha’s Quant Rating on American Resources [https://seekingalpha.com/symbol/AREC/ratings/quant-ratings]
* Financial information for American Resources [https://seekingalpha.com/symbol/AREC/income-statement]