Lily Group, Inc. Closes On Line Of Credit To Complete Phase One At Landree Mine
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.
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SOURCE VHGI Holdings, Inc.