UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934
Casino Resource Corporation
(Exact name of registrant as specified in its charter)
Minnesota 0-22242 41-0950482
(State or other jurisdiction (Commission File Number) (IRS Employer
of incorporation) Identification No.)
1719 Beach Boulevard, Suite 306, Biloxi, Mississippi
(Address of principal executive offices)
Registrant's telephone number, including area code (601) 435-1976
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Item 5. OTHER EVENTS
On September 23, 1996, the Company announced the proposed acquistion of the
Palace Casino as a particpant in a joint venture. A copy of the press release
is attached and incorporated as part of this filing.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
CASINO RESOURCE CORPORATION
September 23, 1996 _____________________________________________
Maurice P. Gaudet
Controller and Acting Chief Financial Officer
<PAGE>
FOR IMMEDIATE RELEASE: September 23, 1996
CONTACT: Jack Pilger, Chief Executive Officer
or Robert J. Allen, Vice President
Casino Resource Corporation 601-435-1976
CASINO RESOURCE CORPORATION, BILOXI, MISS. - Casino Resource Corporation,
(NASDAQ: CSNR), a Minnesota corporation headquartered in Biloxi, Mississippi,
today announced that it, along with its joint venture partners, Robert and
Lowana Low, have submitted a contract to purchase the Palace Casino, located
in Biloxi, Mississippi. The contract has been signed and accepted by
Maritime Group, Ltd., the Debtor-In-Possession, as well as Roy Anderson
Corporation, the major creditor. The contract is now subject to the
approval of the United States Bankruptcy Court for the Southern District of
Mississippi.
The Palace Casino and its assets are being acquired for a purchase price of
$14.25 million, which consists of $11.5 million in cash, and the balance in
notes.
Casino Resource Corporation and the Lows have formed a Mississippi Limited
Liability Company, New Palace, Inc., for the purpose of acquiring and
operating the Palace Casino assets. Robert and Lowana Low are the majority
shareholders in Prime, Inc., a nationally prominent truck leasing firm
headquartered in Springfield, Missouri, with annual revenues in excess of
$300 million. The Lows will initially own 80% of the LLC and Casino Resource
Corporation 20%, with CRC having an option to purchase an additional 29%
within the next two year period.
The Palace Casino filed for Chapter 11 Bankruptcy protection in December 1994.
It continues to operate under Chapter 11 protection and it is contemplated
that the casino will remain open through the date of closing, which is
expected to be sometime in December 1996. Gross gaming revenue for the past
six months, as reported by the Palace to the Mississippi Gaming Commission,
was approximately $2.0 million per month, which virtually breaks the property
even.
New Palace, Inc. has entered into a long-term lease agreement on an eleven-
acre property, which adjoins the Palace's present ten acres. The combined
land holdings will make the Palace property the largest gaming site on the
Mississippi Gulf Coast. In addition, plans call for the development of a
hotel which will be adjacent to the casino as well as other site improvements
and casino upgrades.
According to Jack Pilger, CEO of Casino Resource Corporation, "The Palace
was victimized by major cost overruns from its inception; with the seller,
Maritime Group, Ltd., spending some $50 million on the casino and land
improvements. With inadequate working capital, the property was never able
to establish itself here on the Gulf Coast. With appropriate working
capital, experienced management, adequate parking, hotel rooms, an attractive
entrance, a reduced purchase price, and with it being basically an all equity
transaction, I feel confident the new Palace Casino will be in a position to
garner enough market share to give us an excellent return on equity.
Pilger noted, "Pending a successful closing of the Palace transaction and in
conjunction with our previously announced Tunisia, North Africa casino,
which is currently under construction and due to open in July of 1997; as
well as our Technical Assistance Agreement with Harrahs relative to the
Pokagon Casinos in Michigan and Indiana, the Company will have taken a
major step toward achieving its goal of establishing its third division:
"Gaming." Presently, CRC's Entertainment Division operates at the Aladdin
Hotel and Casino in Las Vegas; the Country Tonite Theatre in Branson, Missouri,
and the recently announced new 1,500-seat venue in Pigeon Forge, Tennessee.
CRC's Hospitality Division, while presently operating just Grand Hinckley Inn
, adjacent to Grand Casino, Hinckley, looks forward to operating additional
hotels adjacent to CRC's aforementioned gaming sites."
Casino Resource Corporation is a diversified hospitality, entertainment,
and gaming company.
