LAS VEGAS, May 11, 2016 (GLOBE NEWSWIRE) -- Transnational Group, Inc. (“Transnational”) (OTC:TAMG) today announced that the Company’s wholly-owned subsidiary, “TAMG Minerals,” has ceased all mining operations of the Marble Mountain Mine as of Friday, April 29, 2016.
In July 2015, TAMG Minerals, executed a binding Letter of Intent (LOI) to assume operational control of the Marble Mountain Mine including all of its mining operations, production distribution, sales and administration in exchange for a pre-negotiated royalty fee to be paid to the mine's previous operators on a monthly basis.
According to the Company, TAMG Minerals considered multiple factors before deciding to cease operations at Marble Mountain Mine located in Enterprise, Utah. Primarily, the previous owners initiated a dispute concerning the amount of land that was available to mine whereby both parties could not agree on the acreage that was outlined in the LOI.
Dr. Philip Dutoit, the Company’s CEO, stated, “Transnational Group would like to inform our shareholders of TAMG Minerals’ decision to recently cease all mining operations at Marble Mountain. While we are disappointed in the turn of events that led to this action, we feel strongly that moving forward this decision will lead to greater shareholder value than if we negotiated new terms that would have led to the continuance of operations on this property.”
Additionally, the Company stated that the mining equipment provided by the previous owners to utilize on-site as part of the LOI, required substantial capital outlays for maintenance and repairs. Since TAMG Minerals took control of Marble Mountain Mine, it produced revenue that was in line with original estimates and projected to surpass them in the future while sales of its mined materials were successful due to the company’s efforts.
“Management took several factors into consideration before making this decision and will focus its natural resource operations efforts on our Sandy Valley Gypsum Project moving forward while also exploring new markets that we feel will increase the Company’s revenue and profitability well into the future,” added Israel Gamliel, Transnational Group’s Chief Operations Officer.
The previous owners engaged counsel to attempt to remove TAMG Minerals after the Company grew the Marble Mine operation and opened new markets. The Court of Utah ultimately decreed that due to certain unclear terms, the LOI entered into by both parties would only be upheld for one year and provided an opportunity for both sides to re-enter negotiations which TAMG Minerals declined to do, electing to fully cease operations on the project.
About Transnational Group, Inc.
Transnational Group is a mineral and natural resource exploration company focused on acquiring and mining mineral-rich assets in the Western United States. The Company’s mission is to acquire properties rich in high-grade gypsum and other minerals that have the potential for long-term production and sustainable revenue generation. Transnational is continuously exploring strategic acquisition, partnership and joint venture opportunities that can increase its capital, equipment and natural resource assets.
Investors: The United States Securities and Exchange Commission limits disclosure for U.S. reporting purposes to mineral deposits that a company can economically and legally extract or produce. We may use certain terms in this press release, such as "reserves," "resources," "geologic resources," "proven," "probable," "measured," "indicated," or "inferred," which may not be consistent with the definitions established by the SEC. U.S. investors are urged to consider closely the disclosures in our reports filed with the OTC Markets Group, Inc.
This press release includes forward-looking statements concerning the future performance of our business, its operations and its financial performance and condition, and also includes selected operating results presented without the context of accompanying financial results. All statements, trends analysis, and other information contained in this memorandum including words such as “anticipate,” “believe,” “plan,” estimate,” “expect,” and “intend” and other similar expressions of opinion, constitute forward looking statements. We caution that all forward-looking information is inherently uncertain and actual results may differ materially from the assumptions, estimates or expectations reflected or contained in the forward-looking information, and that actual future performance will be affected by a number of factors, including economic conditions, technological change, regulatory change and competitive factors, many of which are beyond Transnational’s control.
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Source:Transnational Group, Inc.