Novare Holdings anchors R2.8 billion Investment

In a bold move linking African capital with American industrial innovation, Novare Holdings, a leading South African institutional investment firm, has committed to anchor a major funding round for American Resources Corporation (NASDAQ: AREC) through its holding in ReElement Technologies Corporation. The deal, worth approximately R2.8 billion ($150 million), will drive the expansion of ReElement’s cutting-edge rare earth and critical mineral refining operations in Indiana, USA.

ReElement’s 42-acre Marion supersite will now undergo significant scaling, backed by this injection of both equity and debt capital. The site, a former RCA factory that once powered American manufacturing, is set for a revival — this time as a hub for the advanced materials vital to clean energy, electric vehicles, and defence technologies.

At the core of ReElement’s value proposition is its patented chromatographic separation technology, developed in partnership with Purdue University. The platform offers an efficient, scalable, and environmentally friendly method to produce ultra-pure light and heavy rare earth oxides, crucial to magnet manufacturers and high-tech supply chains in the U.S. and allied nations.

“This is a historic moment. With Novare as our anchor investor, we’re not just expanding capacity — we’re reshaping the global critical minerals supply chain,” said Mark Jensen, CEO and Chairman of ReElement Technologies. “Together, we’re proving that African capital can invest in America’s best technology, and that same technology can deliver lasting value back to Africa.”

Indeed, this landmark investment underscores Novare’s ambition to catalyse global industrial transformation through the strategic deployment of African institutional capital. Beyond scaling ReElement’s U.S. operations, the partnership is also focused on reversing Africa’s “extract-to-export” mining model. Earlier this year, Novare and ReElement announced plans to co-develop the continent’s first multi-mineral refining facility — bringing beneficiation, industrial development, and high-skill jobs to African soil.

“Novare is proud to stand behind ReElement as it scales groundbreaking American technology,” said Ola Leepile, CEO of Novare Holdings. “This investment reflects our belief that African institutional capital has a powerful role to play in global industrial transformation. We’re backing U.S. innovation at home and abroad, supporting jobs and growth in Indiana and bringing long-overdue value addition and industrial development to the African continent.”

The move comes as rare earth elements and critical minerals become ever more strategically important, underpinning technologies from wind turbines and EVs to advanced defence systems. ReElement’s scaled refining capacity aims to ease bottlenecks in U.S. supply chains while supporting a more circular, secure, and sustainable critical mineral ecosystem.

For Novare Holdings, which operates across South Africa, Nigeria, Mozambique, Mauritius, and Zambia, the deal reflects its commitment to innovative, high-impact investments that unlock value for both African and global markets. And for ReElement and American Resources Corporation, it signals a vote of confidence from African capital at a moment when global demand for critical minerals is only set to rise.