FT. WORTH, Texas, Jan. 12, 2012 /PRNewswire/ -- VHGI Holdings, Inc. (OTC.QB: VHGI) announced today that Indianapolis Power & Light (IPL), a subsidiary of AES Corp. (NYSE: AES), has entered into a definitive agreement to purchase coal over 3 years from the Lily Group. As recently announced, VHGI has entered into a Definitive Stock Purchase Agreement with the Lily Group as announced January 9th, 2012.
The agreement calls for IPL to purchase 1.0 million tons of coal from the Landree mine and also provides IPL with an option to purchase an additional 180,000 tons in 2013 & 2014.
"This is a major milestone in the progress of VHGI," said Doug Martin CEO of VHGI. "This is precisely why we have pursued Lily Group, which owns The Landree Mine. Our due diligence indicated that The Lily Group had the ability, infrastructure and opportunity to land major contracts such as this agreement. Based on our projections we are confident that together, we will have additional mining capacity during this period to secure additional high margin contracts for the Landree mine or sell on the spot market, further expanding our profit potential," added Mr. Martin. "We are currently in talks with other major utilities to supply them with our coal."
Mr. Martin further commented: "VHGI Coal is in final negotiations of financing to complete the Lily Group transaction. One key component of securing such financing was the execution of this contract by Lily Group. This contract provides us with a solid, long-term revenue stream, which has been well received by the financial community."
Mr. Rick Risinger, President of VHGI Coal also commented on the contract: "The quality of our coal, the adjacent rail line and the unique location our mine allows us to ship the coal to certain customers in a very competitive manner, giving us a geographic transportation advantage to the local utilities. That is one competitive issue that made us attractive to IPL & we believe it will make us equally attractive to other major companies."
About VHGI Holdings VHGI Holdings is a diverse company with assets and interests focusing on opportunities within the Energy and Mining Markets, Precious Metals and Healthcare Technology Industry.
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For Further Information: Contact Mr. Douglas P. Martin
Shareholder Relations – Communications: (954) 548-3086
SOURCE VHGI Holdings, Inc.