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.
SOURCE VHGI Holdings, Inc.