HOUSTON, Oct. 15, 2007 (PRIME NEWSWIRE) -- Nevada Gold & Casinos, Inc. (AMEX:UWN) today will be providing an update at its annual shareholders meeting regarding several recent developments that reflect steps management has taken to divest non-core assets, implement operating initiatives and position the Company for growth. The Company also announced it filed an 8-K today regarding certain amendments to its credit agreement which are more fully described in its SEC filing.
First, Restaurant Connections International, Inc. ("RCI"), in which the Company has a 34% interest, has received a proposed Letter of Intent to purchase RCI for $5.5 million. The LOI has been accepted in principle by the RCI Board of Directors. The proposed buyer has offered to close on the transaction in 45 days. RCI owns the sole Pizza Hut franchise in Sao Paulo, Brazil, giving RCI ownership and operation of 17 Pizza Hut restaurants in Sao Paulo.
Second, the Company indicated that its wholly-owned subsidiary, Goldfield Resources, Inc. ("Goldfield"), is under contract to dispose of its mining assets and the transaction is scheduled to close in a few days. Goldfield holds mining claims totaling approximately 9,000 acres in the State of Nevada, but is not directly involved in mining operations. Goldfield has secured a mining lease for its properties with Metallic Goldfield, Inc. ("Metallic"), which is the proposed purchaser. The Company expects to sell the Goldfield assets slightly in excess of book value, and does not expect to report a material gain from the transaction.
Robert Sturges, CEO of Nevada Gold & Casinos, Inc., commented, "We are delighted with the progress we have made in several crucial areas, including the disposal of non-core assets and the steps we are taking to ensure the Company's future growth. We are particularly pleased to be near completion on the sale of both RCI and Goldfield Resources, and believe the disposition of these assets leaves our portfolio more appropriately streamlined than ever before. We are also continuing to work with Sheldon Good to sell our Colorado acreage despite the lack of adequate bids during our auction period."
In addition, Nevada Gold announced it has entered into an exclusive due diligence period with respect to a proposed acquisition of a casino in the Southeastern United States at an EBITDA multiple expected to be approximately 6.9x. A decision regarding whether to proceed with the proposed acquisition should be determined within 60 days. The decision to proceed is subject to normal and customary contingencies, including the ability to finalize terms and secure financing for the transaction.
"We are very excited to have found an attractive acquisition opportunity, and while we cannot disclose specific details at this time, we look forward to keeping our investors apprised of our progress on this front. Importantly, we continue to demonstrate ongoing financial discipline, and to that end look forward to the planned relocation of our corporate offices in mid-November which should result in cost savings of more than $1.0 million over the next five years. Clearly we have been very focused on every element of our previously outlined plan to position the Company for the future, and look forward to continued success as we work to build value for our shareholders," concluded Mr. Sturges.
Forward-Looking Statements
This release contains forward-looking statements, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. We use words such as "anticipate," "believe," "expect," "future," "intend," "plan," and similar expressions to identify forward-looking statements. Forward-looking statements include, without limitation, our ability to increase income streams, to grow revenue and earnings, and to obtain additional gaming projects. These statements are only predictions and are subject to certain risks, uncertainties and assumptions, which are identified and described in the Company's public filings with the Securities and Exchange Commission.
About Nevada Gold & Casinos
Nevada Gold & Casinos, Inc. (AMEX:UWN) of Houston, Texas is a developer, owner and operator of gaming facilities and lodging entertainment facilities in Colorado and California. The Company owns a 43% interest in the Isle of Capri-Black Hawk LLC, which owns Isle of Capri-Black Hawk and Colorado Central Station, both of which are in Black Hawk, Colorado. Colorado Grande Casino in Cripple Creek, Colorado is wholly owned and operated by Nevada Gold. The Company also works with Native American tribes in a variety of capacities. Native American projects consist of a casino to be built in Pauma Valley, California for the La Jolla Band of Luisenyo Indians and a casino to be developed by Buena Vista Development Company, LLC in the city of Ione, California for the Buena Vista Rancheria of Me-Wuk Indians. For more information, visit www.nevadagold.com.
The Nevada Gold & Casinos, Inc. logo is available at http://www.primenewswire.com/newsroom/prs/?pkgid=1552