JOHANNESBURG, South Africa, Oct. 6, 2004 (PRIMEZONE) -- Centurion Gold Holdings, Inc. (OTCBB:CGHI) announced today that with the funding closed last week from Laurus Funds, Centurion is to restructure the terms of the acquisition of Mine Waste Solutions, Ltd., an environmental remediation dump treatment company, specializing in rehabilitation projects and its wholly owned subsidiary, Chemwes, which currently is producing 65,000 oz. of gold a year, accounting for $24 million in revenue, to ensure that the deal is completed.
Under the new terms, the transaction, when completed, will consist of a combination of cash and a convertible note. The note will be convertible into CGHI equity at a fixed price over three years.
CEO Arthur Johnson of Centurion Gold Holdings said, "The closing of the Mine Waste/Chemwes acquisition will increase production by 65,000 ounces a year and raise CGHI's asset value to $2.91 a share. It is a critical step in enhancing shareholder value and fulfilling our business strategy to take advantage of the 'buyers market' in valuable gold-producing assets in South Africa at the present time."
The world's largest producer of gold, South Africa's enormous gold ore reserves represent more than 40% of global reserves. The democratic government of South Africa has a so-called "use it or lose it" policy, which forces gold mining companies that own mineral bearing properties to prospect and develop them. For many years, major gold companies have acquired mineral rights without initiating mining operations. The new policy dictates that companies must start mining operations within a finite time period, approximately one year. This has resulted in a "buyer's market" in properties with mineral rights as well as mines with proven reserves in South Africa. It is Centurion Gold Holdings' business strategy to acquire such properties as well as operating mines to exploit mining opportunities.
About Centurion Gold Holdings, Inc.:
Centurion Gold Holdings, located in Johannesburg, South Africa, started three years ago to identify and acquire promising ore-bearing properties. In the past six months, it has acquired four properties: the Primrose Gold Mine; the Omaruru Gold Mine; the Sallies Mine and a chrome bearing operation. The Company is positioning itself to become a major producer in this market by acquiring mineral bearing properties and mineral rights.
Forward Looking Statements:
Statements about the Company's future expectations, including future revenues and earnings, and all other statements in this press release other than historical facts are "forward-looking statements" within the meaning of section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and as the term is defined in the Private Litigation Reform Act of 1995. The company's actual results could differ materially from expected results. The Company undertakes no obligation to update forward-looking statements to reflect subsequently occurring events or circumstances. Should events occur which materially affect any comments made within this press release, the Company will appropriately inform the public.