The Colorado Grande Casino-Cripple Creek is located near the center of the Cripple Creek market in the registered historic Farley-Lampmen building, which was constructed in 1896. The property consists of a land-based casino with 214 slot machines, a 3-room hotel and 44 parking spaces. The Cripple Creek market consists of 17 gaming facilities and generated gaming revenues of approximately $150 million in calendar year 2004. Cripple Creek is 40 miles west of Colorado Springs. The Colorado Grande-Cripple Creek attracts customers primarily from Colorado Springs, Fort Carson and areas south of Denver with a population base of 3.5 million people.
H. Thomas Winn, Chairman, President & CEO of Nevada Gold & Casinos, Inc., commented, "We are extremely pleased with this acquisition. It provides us with our first wholly owned casino from which we can train additional casino personnel as we expand further into casino operations."
Renovations will immediately begin to the interior and exterior of the property, as well as upgrades of the gaming equipment, and with this capital expenditure, it is anticipated that the Colorado Grande's market share will increase accordingly.
Isle of Capri-Black Hawk LLC will book a loss on the sale of this asset of approximately $4 million. Nevada Gold expects to record its share of the loss in the fourth quarter of fiscal 2005 ending March 31, 2005.
This release contains forward-looking statements, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can generally be identified by the use of words such as "estimate," anticipate," "believe," "expect," "future," "intend," "plan," and similar expressions. Forward-looking statements in this release include, without limitation, "anticipated". 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. of Houston, is a developer of gaming properties, and has real estate interests in Colorado, California, and Nevada. UWN owns a 43% interest in The Isle of Capri-Black Hawk LLC, which owns Isle of Capri Casino, a 237-room hotel/casino and Colorado Central Station Casino (both located in Black Hawk, Colorado, about 35 miles west of Denver) and Colorado Grande Casino, located in Cripple Creek, Colorado. The LLC is a joint venture with Isle of Capri Casinos, Inc. (Nasdaq:ISLE). UWN has 69% ownership of Dry Creek Casino, LLC, which is assisting the Dry Creek Rancheria Band of Pomo Indians with their River Rock Casino, Alexander Valley, Sonoma County, California (about 75 miles north of San Francisco in the California wine country). UWN has 51% ownership of Route 66 Casinos, LLC, which has the right to lease gaming equipment to the Pueblo of Laguna in their Route 66 Casino 11 miles west of Albuquerque, N.M., which opened in September 2003. Nevada Gold Tulsa, Inc., a wholly owned subsidiary, has entered into a contract to develop and manage a casino for the Muscogee (Creek) Nation in Tulsa, Oklahoma. Also, Gold River, LLC, a wholly owned subsidiary of UWN, has entered into a development agreement for a gaming resort in Pauma Valley, California for the La Jolla Band of Luiseno Indians. The management agreement for La Jolla is currently being finalized and is expected to be completed in the near future. For more information, visit www.nevadagold.com.