The letter of intent has been extended until 30 January 30, 2012.
VHGI and Rick Risinger, the sole shareholder of the mining company are in the process of finalizing the definitive transaction documents and obtaining the various bank, third-party and regulatory consents necessary to fulfill the transaction.
The parties intend to close this transaction as soon as possible following receipt of such consents.
VHGI Coal has already invested about $4.5m in the company in order to build-out the infrastructure and put the mine into full production by January, 2012.
Furthermore, the company has the rights to mine a total of 2,800 acres, with verified reserves of 21 million saleable tons of coal available, with an expansion of an additional 80 million recoverable tons.
The mine has received all necessary regulatory approvals, and is currently in production.
Currently, the mine is in shipping stages and producing approximately 130,000 tons of coal since August 2011, and is expanding production starting in January.
