LAS VEGAS, May 20, 2014 (GLOBE NEWSWIRE) -- Transnational Group, Inc. (Pink Sheets:TAMG), 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.
About Lanix Exploration, Inc.
Lanix Exploration (Lanix) is a New Jersey corporation formed to explore and commercially develop rare earth and rare element minerals. The company, which was formed by Antonio Bonfiglio and Heather N. Whitaker, consists of geologists, chemists and entrepreneurs specializing in identifying economic rare earth element (REE) concentrations from tailings, mine dumps, processed ore residues and materials.
About Transnational Group, Inc.
Transnational Group, Inc. is a development stage holding company whose primary business is focused on the exploitation of natural resources and acquiring and developing transportation systems through partnerships and joint ventures, as well as the development of formidable partnerships with sponsoring governments and integrating management's best practices and expertise into their infrastructure.
Cautionary Note to U.S. 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 use certain terms on this press release, such as "reserves," "resources," "geologic resources," "proven," "probable," "measured," "indicated," or "inferred," which may not be consistent with the reserve 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. You can review and obtain copies of these filings from the OTC Markets website at: www.otcmarkets.com.
Forward-Looking Statements:
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. These forward-looking statements include, among others, statements with respect to our objectives and strategies to achieve those objectives, as well as statements with respect to our beliefs, plans, expectations, anticipations, estimates or intentions. These forward-looking statements are based on our current expectations. 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 our control. Therefore, future events and results may vary significantly from what we currently foresee. We are under no obligation (and we expressly disclaim any such obligation) to update or alter the forward-looking statements whether as a result of new information, future events or otherwise.