American Clean Resources Group subsidiary signs joint venture term sheet for mineral processing technologies

American Clean Resources Group, Inc. (OTC: ACRG) reported Monday that its wholly owned subsidiary, Tonopah Custom Processing, Inc. (TCP), entered into a non-binding joint venture term sheet with ENERG4 Mining Company LLC and certain technology contributors. The announcement was made in a press release statement based on an SEC filing. The company, currently valued at $69.61 million, has seen its stock price surge to $5, representing a remarkable 152% return over the past week and trading just 0.99% below its 52-week high of $5.05.

According to the filing, the term sheet was signed on November 24 and sets out the proposed formation of Nexus 7 Elements LLC, a Texas limited liability company. The joint venture is intended to evaluate and deploy mineral processing technologies contributed by ENERG4 and the technology partners, supporting American Clean Resources Group’s critical minerals processing initiatives.

Under the proposed terms, TCP would hold 51% of the membership interests in the joint venture, while ENERG4 and the technology partners would collectively hold 49%. TCP is expected to provide the initial capital, and ENERG4 and the partners would contribute non-cash assets, including technology rights, engineering resources, and equipment.

The governance structure outlined in the term sheet provides for a three-member board of directors, with TCP appointing two directors and ENERG4 and the technology partners appointing one. ENERG4 would designate key operational personnel, subject to oversight by the joint venture’s board.

Initial activities are planned for a 207-acre industrial site in Winnie, Texas, which includes approximately 34,000 square feet of processing and laboratory space. The site is located near transportation infrastructure such as a shipping channel, Interstate 10, and a regional airport. The facility is intended to support pilot-scale testing and potential future expansion for processing various feedstock types. If pilot testing is successful, commercial deployment may take place at American Clean Resources Group’s mineral-rich private property in Nevada.

The company emphasized that the term sheet is non-binding and does not obligate any party to proceed with the joint venture or related transactions. Any binding commitments will depend on the negotiation and execution of definitive agreements, including a joint venture operating agreement and intellectual property agreements. There is no assurance that these agreements will be completed or that the joint venture will be formed as described.

All information is based on a press release statement and the company’s Form 8-K filing with the Securities and Exchange Commission.

In other recent news, American Clean Resources Group, Inc. announced a significant corporate decision to unwind a previous transaction with Launch It LLC involving SWIS LLC. As part of this agreement, Launch It LLC will return 1,470,000 shares of American Clean Resources Group’s common stock, which the company plans to retire, leading to a permanent reduction in its outstanding shares. This move aligns with the company’s operational objectives, as the SWIS technology did not fit within its strategic direction. Additionally, American Clean Resources Group reported the resignation of its president, J. Bryan Read, effective September 25. The company clarified that his resignation was not due to any disagreements regarding company operations or policies. The CEO will take over Mr. Read’s responsibilities. The company expressed gratitude for Mr. Read’s contributions over the years. These recent developments reflect ongoing changes within the company’s structure and strategy.