HOUSTON, May 19, 2008 (PRIME NEWSWIRE) -- Nevada Gold & Casinos, Inc. (AMEX:UWN) today announced that it has entered into a settlement agreement with Clay County Holdings, Inc. (CCH), Service Interactive, Inc. (SI) and Restaurant Connection International, Inc. (RCI), a company that owns 16 Pizza Huts in Sao Paulo, Brazil. The agreement terminates CCH and SI's respective debts to Nevada Gold, which combined equal approximately $4.6 million. In exchange, Nevada Gold has appointed a majority of the Board of Directors of RCI and was issued a promissory note from RCI in the amount equal to the CCH and SI debts combined.
Pursuant to the terms of the Settlement Agreement, Nevada Gold will dismiss its collection lawsuits against CCH and SI in the district court of Harris County, Texas.
Nevada Gold has increased its ownership in RCI from 34% to 56% and with a majority of seats on RCI's Board of Directors intends to vigorously pursue an outright sale of RCI.
Mr. Robert B. Sturges, Chief Executive Officer of Nevada Gold, commented, "We are pleased that increasing our interest in RCI has enabled us to enter into this settlement agreement. Now that we are in control of RCI we are very well positioned to move ahead with intensive efforts to sell RCI as part of our broader strategy to dispose of non-core assets and focus exclusively on owning and operating gaming properties going forward."
About Nevada Gold & Casinos
Nevada Gold & Casinos, Inc. (AMEX:UWN) of Houston, Texas, is a developer, owner and operator of gaming facilities and lodging entertainment facilities in Colorado and California. Colorado Grande Casino in Cripple Creek, Colorado is wholly owned and operated by Nevada Gold. The Company recently reached an agreement to acquire the Horizon Casino Hotel in Vicksburg, Mississippi. The Company also works with Native American tribes in a variety of capacities. Native American projects consist of a casino to be built in Pauma Valley, California for the La Jolla Band of Luiseno Indians and a casino to be developed by Buena Vista Development Company, LLC in the city of Ione, California for the Buena Vista Rancheria of Me-Wuk Indians. For more information, visit www.nevadagold.com
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