Nevada Gold & Casinos, Inc.
and the La Jolla Band of Luiseno Indians announced today that they have
signed a development agreement for a gaming resort development in Pauma
Valley, California. Nevada Gold will be the developer and manager of the
casino. The management agreement is currently being finalized and is
expected to be completed in the near future. The Company also will assist
the tribe in obtaining project financing. The multi-phase project will be developed on the 9,998 acre La Jolla
Indian Reservation in Pauma Valley, California. The first phase will
include the construction of a casino with approximately 349 slots and 12
table games, a 75-room hotel, dining facilities and parking. The total
investment for the first phase will be approximately $25 million.
Subsequent phases may include an expanded casino, RV-park, additional
restaurants and other entertainment venues.
Nevada Gold will receive a management fee of 23% of pretax net revenues
over a five-year period, with a 2-year renewal period, for the first
phase, and a new 5-year term for any subsequent phase. The Company will
also receive a 2% development fee on the total project costs of each phase.
Chairman, President and CEO of Nevada Gold, H. Thomas Winn said, “We are
pleased to have reached contractual agreements with the La Jolla Band of
Luiseno Indians. This gaming resort will create economic benefits for the
tribe and allow for future expansion opportunities.”
Chairman of the La Jolla Band of Luiseno Indians, Tracy Lee Nelson, added,
“We are extremely excited with the signing of this Development Agreement
and sincerely thank Nevada Gold for their confidence and look forward to
working in partnership with Nevada Gold and assisting the Tribe in
fulfilling the Tribe’s vision for economic development.”
Construction on the project is currently anticipated to begin in 2004. The
new facility is expected to open before the end of 2005, pending necessary
regulatory, construction and environmental approvals.