Diamondhead Casino Corporation Issues Status Report
PR NEWSWIRE - February 06, 2003 08:59
MADEIRA BEACH, Fla., Feb 6, 2003 /PRNewswire-FirstCall via COMTEX/ -- Diamondhead Casino Corporation (OTC Bulletin Board: DHCC) issued a status report covering recent events.
EXERCISE OF OPTION
Mississippi Gaming Corporation ("MGC"), a wholly owned subsidiary of Diamondhead Casino Corporation, had previously entered into an Option Agreement to purchase approximately 80 acres of land included within its 404- acre site on Interstate 10 in Diamondhead, Mississippi for a purchase price of Ten Dollars ($10.00). The option was originally purchased so as to avoid certain limitations that attached to the underlying parcels. It was in the interest of the Company and its Diamondhead project that certain litigation instituted by the seller of the property be completed before MGC exercised the option. The litigation was finalized in the last year. MGC exercised its option in December 2002. The property was transferred to MGC by Warranty Deed on December 18, 2002. The exercise of this option gives MGC full title to the entire 404-acre tract. There are no other title issues outstanding with respect to the property and MGC now owns the entire tract in fee simple. There is no debt and there are no liens on the property.
ENVIRONMENTAL IMPACT STATEMENT
On November 18, 2002, Casino World, Inc., another wholly owned subsidiary of Diamondhead Casino Corporation, entered into an Agreement with EDAW, Inc., an international firm specializing in landscape architecture, urban design and environmental planning, to perform an environmental impact study (EIS) on its Diamondhead property for $500,000. The EIS is a prerequisite for obtaining a U.S. Army Corps of Engineers permit. Under the terms of the Agreement, EDAW will analyze the environmental impacts related to the project based on four different master plans. Under the terms of the Agreement, a preliminary draft EIS is due on or before August 18, 2003. An incentive bonus to perform ahead of schedule and a penalty clause for failing to timely produce and distribute the preliminary draft EIS have been included in the Agreement.
HANCOCK COUNTY PERMIT EXTENSION
On November 12, 2002, Casino World, Inc. requested an extension of its Waterfront Special Use District zoning designation given to its Diamondhead property. Both the Hancock County Planning Commission and the Hancock County Board of Supervisors approved the extension through January 6, 2004.
DISCUSSIONS WITH INTERESTED PARTIES
As previously stated in a corporate press release dated May 27, 2002, the Company has declined to comment on the nature of any discussions with persons or entities interested in a joint venture or other type of arrangement with respect to the development or financing of the Company's Diamondhead property. This remains the corporate policy. The Company receives inquiries with respect to the Diamondhead property from agents, brokers, principals, investment banking firms, entities, individuals, and others. The Company is actively engaged in discussions with various interested persons and entities on a regular basis. There is no way of knowing which, if any, of these discussions and potential "deals" might materialize since there is no way of knowing, which, if any, will eventually be funded. Funding is the key. It has been the position of the Company that unless funding can be reasonably assured, no potential deal will be finalized. The Company will continue its policy of not commenting on the specifics of any existing discussions or potential "deals."
FUTURE WEB SITE
The Company has recently begun the process of constructing a Web site so that shareholders and other interested persons can obtain corporate information, including Annual Reports, Quarterly Reports, and 8-Ks. In addition, it is expected that persons accessing the Web site will be able to find aerial and other maps and photographs relating to the Diamondhead and surrounding property.
Diamondhead Casino Corporation, through its wholly owned subsidiary, Casino World, Inc., intends to develop a themed, destination casino resort and hotel at its 404-acre site on the Bay of St. Louis in Diamondhead, Mississippi. There is no outstanding debt and there are no liens on the property. The Company is actively engaged in the process of seeking a joint venture partner and financing for the Diamondhead project.
The development of the Diamondhead, Mississippi project is subject to risks and uncertainties which include, but are not limited to, those relating to permitting, financing, the activities of environmental groups, the outcome of litigation and the actions of federal, state, or local governments and agencies. The Company may be affected by some or all of these factors and other risks and uncertainties, many of which are beyond the Company's control. Except for historical statements contained herein, the statements made in this release constitute forward-looking statements that involve risks and uncertainties.
For further information, contact:
Gregory Harrison, Vice-President
Diamondhead Casino Corporation
(301) 948-7354 |
