Tamg Minerals halts operations of Marble Mountain mine in Utah, US
Transnational Group subsidiary Tamg Minerals has halted all mining operations of the Marble Mountain mine in south-west Utah, US.
In July 2015, the company signed a letter of intent (LoI) to assume operational control of the mine and its operations, production distribution, sales and administration.
In exchange, the company agreed to pay a pre-negotiated royalty fee to the mine's previous operators on a monthly basis.
The decision to cease operations came as the previous owners initiated a dispute regarding the amount of land available to mine. Consequently, both parties disagreed on the acreage outlined in the letter.
Transnational Group CEO Dr Philip Dutoit said: "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."
Tamg also said that the previous owners provided mining equipment to use on-site that required substantial capital outlays for maintenance and repairs.
Transnational Group chief operations officer Israel Gamliel said: "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."
Finally, the Court of Utah decreed that the LoI would only be upheld for one year and both parties are required to re-enter talks.
Tamg Minerals declined to renegotiate and decided to cease operations on the project completely.