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Nevada Gold announces sale of Colorado Grande Casino30 November 2011HOUSTON, Texas -- (PRESS RELEASE) -- Nevada Gold & Casinos, Inc. UWN +5.64% today announced the sale of the Colorado Grande Casino in Cripple Creek, Colorado to G Investments, LLC ("Buyer"). Under the terms of the agreement, the Buyer has agreed to pay the Company $3.2 million of which $800,000 will be paid in cash and $2.4 million will be paid in the form of a promissory note. The proceeds will be used to pay down the Company's debt. "We believe the sale of the Colorado Grande Casino makes good sense from a strategic perspective. Owning a single, small property in the Cripple Creek market is no longer attractive for us as we are focused on properties with greater earnings potential going forward," said Robert Sturges, CEO of Nevada Gold. "Additionally, we were able to sell the property at an attractive EBITDA multiple due to the fact that the principal purchaser owns a property in close proximity to the Colorado Grande Casino. This will enable the Buyer to create synergies and efficiencies not available to Nevada Gold." The Colorado Grande Casino in Cripple Creek, Colorado is a 7,500 square foot facility which consists of approximately 200 slot machines, seven guest rooms, 44 parking spaces and one restaurant. Closing of the acquisition is expected to take place before the end of the Company's 2012 fiscal year and is subject to regulatory approval, no material change in gaming tax law and other customary closing conditions, including a lender's consent. About Nevada Gold Nevada Gold & Casinos, Inc. UWN +5.64% of Houston, Texas is a developer, owner and operator of 11 gaming facilities in Colorado and Washington. |