Applied Minerals Completes Sale of Iron Oxide Assets
EUREKA, UT/ACCESSWIRE/August 10, 2022/ Applied Minerals, Inc. (the “Company” or “AMI”) (OTC PINK: AMNL), a leading producer of halloysite clay products for high-value industrial applications, is pleased to announce that it has entered into the sale of rights to its iron oxide mineral resources and related assets (the “Iron Oxide Assets”) and associated operating agreements, as previously described in Forms 8-K filed on July 11, 2022 and June 2, 2022.
The closing of the sale of the iron oxide assets to BMI Minerals Company (“BMCO”) and Brady McCasland, Inc. (“BMI”) is a major milestone for the Company. The net proceeds of $1,860,000 generated from the sale significantly strengthen the Company’s liquidity position and enable it to fund the continued growth of its high value-added halloysite clay business and the further development of a number of opportunities involving the use of its halloysite clay in lithium-ion battery applications. In addition, the Company’s improved liquidity position reduces its risk as a sole supplier to current and potential customers of its halloysite clay products. Management will provide a full update on the Company’s halloysite clay business in the coming weeks.
Management determined that the sale of the iron oxide assets maximized their value to the company. As part of the sale, BMCO will pay AMI 20% or 25% of the gross profit from any sales of crushed, screened or crushed iron to four customers that were previously developed by AMI.
Mario Concha, John Levy and Robert Betz have resigned as directors of the Company. MM. Concha, Levy and Betz also gave up just over $1,800,000 in accrued but unpaid attendance fees and other related compensation. The agreement to waive these fees and related compensation was an essential condition of the closing of the sale. The management thanks Messrs. Concha, Levy and Betz for their years of service as AMI administrators.
In connection with the closing of the sale of the iron oxide assets, BMCO received 20 million common shares of AMI and BMI obtained the right to appoint a number of directors representing one-third of the board of administration of AMI. .
Additional details regarding the closing of the sale can be found in Form 8-K filed on August 10, 2022.
About Applied Minerals, Inc.
Applied Minerals, Inc., owner of the Dragon Mine property in Eureka, UT, is a producer of halloysite clay and natural iron oxides. Halloysite is an aluminosilicate clay that has a naturally formed tubular structure. The Company markets its halloysite clay and iron oxide products in a number of high-value application areas, including but not limited to catalysts and molecular sieves, polymer reinforcement, flame retardant additives, controlled release, construction products and minerals for lithium-ion batteries. Applied Minerals sells its halloysite products under the trade name DRAGONITE and its iron oxide products under the trade name AMIRON.
Safe Harbor Statements
The following statements are safe harbor statements under the Private Securities Litigation Reform Act of 1995 for Applied Minerals, Inc. Certain statements contained or implied by this press release may be deemed to be forward-looking statements which, by their nature, are uncertain. Therefore, actual results could differ materially. For more detailed information on how risks and uncertainties could affect the Company’s revenue pipeline, please refer to Applied Minerals’ most recent annual and quarterly reports filed with the SEC. The Company assumes no obligation to update any forward-looking information.
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