Issue 221
December 6 - 12, 2004
Volume 4
page 2
 

Century Casinos Agrees to Sell Interest in Gauteng, South Africa, Project

COLORADO SPRINGS, Colo - Century Casinos, Inc. announced today that it has agreed to sell its interest in the Gauteng, South Africa, license application.

In 1997, Silverstar Development Limited (Silverstar), along with Century Casinos, Inc. (Century), had made an application to the Gauteng Gambling Board (GGB) for a casino license in Gauteng, South Africa. After a series of legal challenges and lawsuits, the license is still unresolved with the GGB having seen fit to prolong the legal dispute through the Supreme Court, resulting in Silverstar not being able to commence with the casino development. Silverstar has immediate pressing financial needs beyond the level which they or Century would consider supporting, considering the legal uncertainties unresolved and bearing in mind the long history of the project.

The Akani Group which is comprised of Akani Leisure Investments (Proprietary) Limited and Gold Reef Casino Resorts Limited (partly owned by the Casinos Austria group) has agreed to provide the funds necessary for Silverstar to complete the project and to acquire the entire shareholding of Silverstar as well as all assets, rights and obligations of Century in the project.

The total selling price to Century is R50,3 million, approximately $8.5 million. An initial payment of R10.0 million, approximately $1.7 million, has been received today for the sale of land owned by the Company's South African subsidiary for the casino site and reimbursement of expenses and previously advanced funds to Silverstar.

The balance of R40.3 million, approximately $6.8 million, is contingent on certain approvals being secured by Silverstar and the Akani Group. The outcome of these approvals is unknown at this time but with the financial backing of the Akani Group, funding is now available to Silverstar to complete its tasks and provide a higher level of assurance that Century will ultimately get a return on its efforts to date. Should such approvals not be obtained, Century's involvement in the project will be restored to the previous level of ownership and management.

"The legal process in which Silverstar is embroiled in was demanding an increasing amount of management's time. The financial and management distraction for the Gauteng project had to be considered in light of the various exciting North American opportunities that have been secured. We believe the later represent a better use of Century's resources and look forward to completing this transaction to further grow Century Casinos, Inc.", said Chairman and CEO Erwin Haitzmann

 

 

 


Pinnacle Entertainment Reaches Another Development Milestone for L'Auberge du Lac

LAKE CHARLES, Louisiana - Pinnacle Entertainment, Inc. announced that its riverboat casino has been moved into its permanent position at the L'Auberge du Lac Hotel & Casino site in Lake Charles, Louisiana. Originally built in three separate sections, the riverboat casino underwent final assembly and finish work at the Lake Charles Port Industrial Canal before being guided up the Calcasieu River to the L'Auberge site.

"We are excited to reach another development milestone for L'Auberge," said Daniel R. Lee, Chairman and CEO of Pinnacle Entertainment. "With the riverboat casino in place, we continue our progress toward an on-schedule and on-budget opening in Spring 2005."

Located in Lake Charles, Louisiana, L'Auberge du Lac will include approximately 745 rooms, a championship golf course, and a single-level dockside casino surrounded on three sides by the hotel and other amenities. In addition to being the only single-deck riverboat in Louisiana, the 225-feet by 330-feet gaming vessel will be one of the largest single-deck riverboat casinos in the United States. Pictures of the work in progress are accessible via the Company's corporate website at www.pnkinc.com.


Pinnacle Entertainment Receives Board Approval for Purchase of the Embassy Suites Hotel(R) - St. Louis-Downtown

ST. LOUIS, Missouri - Pinnacle Entertainment Receives Board Approval for Purchase of the Embassy Suites Hotel(R) - St. Louis-Downtown

Pinnacle Entertainment, Inc. announced today that its board of directors has approved the Company's proposed purchase of the Embassy Suites Hotel(R) - St. Louis-Downtown from FelCor Lodging Limited Partnership. The final purchase is contingent upon completion of successful due diligence and is expected to close in the first quarter of 2005.

"Once the transaction closes, we plan to renovate the hotel and incorporate it into the design of our neighboring casino and luxury hotel," said Daniel R. Lee, Chairman and CEO of Pinnacle Entertainment. "We look forward to incorporating the Embassy Suites Hotel(R) into our portfolio, as well as welcoming all of its employees into the Pinnacle family."


George Strait

MGM Grand: Country music legend, George Strait has earned 25 platinum albums and performed at the White House for President Bush and First Lady Laura Bush. Strait performs at the MGM Grand..

Date: February 5, 2005

Price: from $95, $75 & $50

Time: 8:00 pm

 

For more information please call: 1-877-880-0880

 
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