Transnational Group Forms Joint Venture to Produce Titanium and Iron Ore on Former Gold Mines in Montana
LAS VEGAS, May 20, 2014 (GLOBE NEWSWIRE via COMTEX) --
Transnational Group, Inc. TAMG 0.00% , today announced that the Company has formed a joint venture with Lanix Exploration, Inc. called TAMG Minerals, Inc. to acquire the mineral and mining rights to develop one to three target claims located in Anaconda, Butte and Havre, Montana.
The agreement provides for Transnational Group to own a 50% interest in the joint venture in return for providing capital necessary to acquire the mining rights and equipment to process and ship the titanium, iron and raw materials present on the Montana claims. Lanix Exploration will execute and oversee the project's permitting and mining operations.
Lanix projects that titanium and iron ore tailings from the Anaconda claim, which is a former gold mine, could initially produce up to 1,000 tons of raw material per day. This projected amount would generate approximately $1 million in monthly operating income or $12 million in annual operating income. These tailings are present on the surface or at shallow depths, greatly reducing the Company's processing costs and Lanix estimates that the mine will be producing raw material within 90 days.
During the project's proposed second phase, Transnational Group plans to have purchased the necessary equipment to separate the titanium and iron ore tailings from the raw materials on the property. As a result, on the Anaconda claim, Lanix would expect to double production from 1,000 tons of raw material daily to 1,000 tons each of titanium and iron ore. This increase in production would more than double Lanix's operating income projections for the mine.
"This agreement represents a potential sizeable revenue stream and profit margins for Transnational Group with minimal to no production risk, and is expected to greatly increase shareholder value. Given the expertise of Lanix's management team, in identifying and extracting rare earth elements and minerals, we are very confident they will quickly complete the acquisition and permitting process and bring our joint venture's property into production within the next quarter," stated Transnational Group's CEO, Dr. Philip Dutoit.