SULLIVAN, Ind., Feb. 28, 2013 /PRNewswire/ -- VHGI Holdings
Inc. (OTCQB: VHGI) is pleased to announce the successful
establishment of a line of credit to its wholly owned subsidiary
Lily Group Inc. The $6,000,000 line
of credit was obtained from a pair of individual lenders, and was
guaranteed in part by Rick Risinger,
Chief Executive Officer of VHGI Holdings, and Lily Group Holdings
Company, a private corporation controlled by Risinger. Dallas-based investment banking firm Barrier
Advisors was engaged to represent Lily Group, Inc. in the
transaction.
"Throughout this entire process Barrier was instrumental at all
levels in bringing the parties together to get this done in a
timely manner," said Risinger. "This is an exciting time for the
company to have access to the capital necessary to finally bring
Landree Mine into full phase I production," continued Risinger.
"Lily Group Inc. will be utilizing the funds to purchase
additional mining equipment, enhance present equipment to increase
production and effect upgrades to the prep plant and load out
facilities," said Ron Hutchcraft,
President VHGI Coal.
The line of credit is only available for immediate draw down on
identified expenditures that are directly related to production
costs at the Landree Mine. The projected total cost for the
completion of Phase I is approximately $5
million. Landree Mine Phase I is targeted for completion by
April 1, 2013. The Landree Mine,
located in Green County Indiana, is fully permitted and controls a
total of 24 million in-place tons of coal, with projected
production of approximately 20,000 tons per month and plans to
secure additional adjacent minerals through leases in order to
expand the reserve.
"We are pleased to have secured this line of credit for Lily
Group Inc. The company is led by a strong management team and this
credit facility will support Lily Group's operational needs and
provide us with the opportunity to arrange long-term financing for
the mine's continued development," said Barrett Kingsriter, Managing Director of Barrier
Advisors.
About VHGI Holdings, Inc.
VHGI Holdings, Inc. (OTCQB:
VHGI) is a diversified company with assets and interests focusing
on opportunities within Precious Metal Mining and Coal Mining
Industry. VHGI Holdings is actively pursuing new opportunities
within these industries to maximize shareholder return.
About Barrier Advisors
Barrier Advisors, based in
Dallas, TX, provides investment
banking, restructuring and operational improvement services to both
public and private companies, and to several of the largest, most
demanding institutional clients in the capital markets.
www.BarrierAdvisors.com.
VHGI Holdings, Inc. Safe Harbor Statement
The
statements in the press release that relate to the company's
expectations with regard to the future impact on the company's
results from new products in development and any other statements
not constituting historical facts are "forward-looking statements,"
within the meaning of and subject to the safe harbor created by the
Private Securities Litigation Reform Act of 1995. Since this
information may contain statements that involve risk and
uncertainties and are subject to change at any time, the company's
actual results may differ materially from expected results. This
document may contain forward-looking statements concerning the
Company's operations, current and future performance and financial
condition. These items involve risks, contingencies and
uncertainties such as product demand, market and customer
acceptance, the effect of economic conditions, competition,
pricing, the ability to consummate and integrate acquisitions, and
other risks, contingencies and uncertainties detailed in the
Company's SEC filings, which could cause the company's actual
operating results, performance or business plans or prospects to
differ materially from those expressed in, or implied by these
statements. The Company undertakes no obligation to revise any of
these statements to reflect the future circumstances or the
occurrence of unanticipated events.
Contact:
Jim Bender
812-268-5459
SOURCE VHGI Holdings, Inc.