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
Date of report February 24, 1997
CASINO RESOURCE CORPORATION
Minnesota 0-22242 41-0950482
(State or other (Commission File Number) (IRS Employer
jurisdiction of incorporation) Identification No.)
1719 Beach Boulevard, Suite 306, Biloxi, Mississippi 39531-5396
(Address of Principal Executive Office)
Registrant's telephone number, including area code (601) 435-1976
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Item 5. OTHER EVENTS
On February 6, 1997, the Company announced it sold its 20% interest in New
Palace Casino, L.L.C. to its 80% J.V. partners, Robert and Lawana Low of
Springfield, Missouri.
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
February 24, 1997
/s/ Maurice P. Gaudet
--------------------------------
Maurice P. Gaudet
Chief Financial Officer
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FOR IMMEDIATE RELEASE: Thursday, February 6, 1997
CONTACT: 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
has sold its 20% interest in New Palace Casino, L.L.C. to its 80% J.V.
partners, Robert and Lawana Low of Springfield, Missouri. As consideration
CRC will receive $1.0 million in cash and a note for $250,000 due on January
31, 1999. CRC also will receive a return of all moneys expended by CRC on
behalf of the L.L.C. CRC and the Lows closed the transaction purchasing the
Palace on January 31, 1997. The Company issued a debenture for $1.5 million
payable to Maritime, Inc., the debtor-in-possession, which has a term of
two years and a 6% interest rate and is payable in cash or the Company's
common stock at the then prevailing market price, at CRC's discretion.
According to CEO Jack Pilger, "A combination of events contributed to our
decision, some of which included our cash commitments to other projects such
as our wholly owned Tunisian casino venture scheduled to open this summer,
our Pigeon Forge theatre which opens this March, and the possible
opportunities that become available if the Pokagon gaming compact is signed
this spring."
"As an additional complication, the fact that CRC could not manage the
facility until its corporate officers and Board members were found suitable
and this, in our opinion, put additional pressure on turning the Palace
around as a viable venture. The Gaming Commission worked very hard with
respect to their timeliness, but a thorough investigation of a company and
its officers sometimes takes up to nine months. It is the Company's belief
that all of its present officers and directors would be found suitable in
this or any future gaming jurisdictions." The terms of the sale of the
Company's interest to the Lows is subject to approval by the Mississippi
Gaming Commission.
Casino Resource Corporation is a diversified entertainment, hospitality and
gaming enterprise. The Company owns and operates the 2,000-seat Country
Tonite Theatre in Branson, Missouri, and will operate the new 1,500-seat
Country Tonite Theatre in Pigeon Forge, Tennessee, scheduled to open in
March of 1997. In addition, the Company owns Country Tonite Enterprises, an
award-winning theatrical production company in Las Vegas, Nevada (producers
of the "Country Tonite Show," currently in its fifth year at the Aladdin
Hotel); and the Grand Hinckley Inn, located in Hinckley, Minnesota, adjacent
to the Grand Casino. Further, the Company has entered into strategic
alliances with Harrah's Entertainment for the development of Indian gaming
properties in Michigan and Indiana; has agreed to lease and operate a casino
and 500-seat theatre in Sousse, Tunisia.
