VEGA BIOFUELS, INC. announced today that the Company has secured the necessary funding to proceed with its plan to build a green energy bio-coal manufacturing plant in Cordele, GA.
Vega has entered into a Loan Agreement with a group of its existing shareholders that will provide the Company with the necessary funding needed for various expenses associated with the design and construction of the proposed South Georgia manufacturing plant. Funding is in the form of a five hundred thousand dollar line of credit and allows the Company to draw on those funds as needed moving forward.
Vega recently announced plans to build a manufacturing plant in South Georgia that when completed will produce green energy bio-coal for use in existing coal fired power plants around the world. The manufacturing plant will be located in Cordele, Georgia.
"This is a very important first piece of our overall funding plan," stated Michael K. Molen, Chairman/CEO of Vega Biofuels, Inc. "There are a lot of expenses associated with the planning and development of a project of this magnitude. First funds are always the most difficult to find. These funds will allow us to move forward with our plans without having to dilute our securities by conducting a Private Placement. We appreciate the confidence our shareholders have in what we are doing. We will have more information concerning additional funding for the project as we move forward."
The Company made the decision to locate the biomass manufacturing plant in Crisp County after members of it management team met with the Crisp County Industrial Development Council (IDC) earlier this year to discuss their assistance with locating a site for the plant, tax abatements, and various job credits available to Vega if the Company located its plant in their county.