SULLIVAN, Ind., March 06, 2013 /PRNewswire/ -- VHGI Holdings, Inc. (OTCQB: VHGI) is pleased to announce the following update for the Lily Group Inc. Landree Mine Phase 1 Project.
Work at the Landree Mine located in Greene County, Indiana, is primarily focused on the continuous underground development toward the first panel. Improvements and upgrades are being made to the underground equipment that will increase the mechanical availability and improve production rates. Surface upgrades and improvements to the plant, load out and overland belts will increase plant throughput, increase plant yield and automate some functions that were typically labor intensive.
"With our funding in place we have accelerated the pace of development with the hiring of additional personnel, bringing our total work force to 66 employees," said Rick Risinger, CEO of VHGI Holdings. "This will allow us to start shipping coal in March ahead of our original production timeline," continued Risinger.
"Dave Smith, Mine Superintendent, and the Landree Mine team have done an exceptional job the past two weeks working diligently to complete a lot of the improvements necessary to start producing, processing and shipping coal. Their efforts should allow us to ship our first scheduled train to IP&L on March 26, 2013," said Ron Hutchcraft, President of VHGI Coal. "Our goal is to be mining in the first panel by the end of the month, which will provide us the best opportunity to achieve higher production rates, lower operating costs and increased revenue," concluded Hutchcraft.
Lily Group Inc. is contracted to produce and ship a minimum of 180,000 tons at a contract price of $61 per ton to Indianapolis Power and Light for 2013.
About VHGI Holdings, Inc.
VHGI Holdings, Inc. (OTCQB: VHGI) ( www.lilygroup.com ) 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.
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SOURCE VHGI Holdings, Inc.