American Resources (NASDAQ:AREC) stock is soaring higher on Wednesday after announcing a deal to boost its rare earth capabilities.
AREC Stock: 7 Things for Investors to Know About Rare Earth Play American ResourcesAccording to the company, it has gained exclusive licenses from Hasler Ventures LLC in connection with separating and purifying rare earth elements. This will allow its subsidiary, American Rare Earth, to create a supply chain for rare earth materials that is more environmentally friendly.
News of the agreement resulted in heavy trading of AREC stock today. As of this writing, more than 16 million shares of the stock have changed hands. To put that in perspective, the company’s daily average trading volume is roughly 3.58 million shares.
Here’s what potential investors in AREC stock need to know about the company before making any investment decisions.
- American Resources is a rare earth mining company with a focus on metallurgical carbon and other minerals
- That includes those used in the electrification market.
- The company mainly operates in the Central Appalachian basin of eastern Kentucky and southern West Virginia.
- These areas have a high concentration of high-quality rare earth mineral deposits.
- American Resources also has a joint-venture with Gerardine Botte, Ph.D.
- This has Botte and American Rare Earth focusing on graphene production.
- The goal here is to move into the electrification market and serve the Department of Energy, Department of Defense, and electric vehicle market.
AREC stock was up 28.2% as of Wednesday afternoon and is up 127% since the start of the year.
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.