VHGI Holdings, Inc., a diversified company with assets and interests focusing on opportunities within the Precious Metals and Energy Resources Markets and its wholly-owned operating company, VGHI Coal, Inc., announced that it has extended its binding letter of intent until January 30, 2012 for the purchase of an Indiana-based company that operates a coal mine. The company has a right to mine 2,800 acres that are expected to yield 21 million saleable tons of coal with the ability to grow to 80 million recoverable tons. The mine is anticipated to be in full production by January 2012 with the assistance of $4.5 million already invested from VHGI Coal to improve infrastructure.
VHGI and the sole shareholder of the mining company, Rick Risinger, have been working on the final transaction details and expect to close the acquisition deal as soon as the transaction documents are finalized with the various bank, third-party and regulatory consents in hand. Once approved, the deal outlines that Risinger will take the role of President of VHGI Coal and Doug Martin, who is the CEO and President of VHGI Holdings, will take over as acting CFO of the company. Risinger will be tasked with seeking other coal opportunities in the Illinois basin for the company to pursue and in order to grow the business in the Midwest.
“By having this much acreage under direct control of this operation, and with all the permits in place, we could not have crafted a better scenario for us to enter this sector of the energy market,” stated Doug Martin, CEO and President, VHGI Holdings in a press release. “We see this as an outstanding opportunity to expand VHGI’s footprint with an experienced and professional team and to create significant value for our shareholders.”
Since August of 2011, the Indiana mine has shipped approximately 130,000 tons of coal, which will increase starting in January with the new infrastructure improvements. The mine also benefits from its close proximity to multiple coal burning electrical generation facilities as well from having a rail spur adjacent to the property to facilitate a train and other transportation on-site.
For more information, please visit www.vhgiholdings.com
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