Baymount Incorporated
TSX VENTURE : BYM

Baymount Incorporated

October 07, 2009 18:59 ET

Baymount Extends Closing of Plaza Transaction

TORONTO, ONTARIO--(Marketwire - Oct. 7, 2009) - Baymount Incorporated ("Baymount" or the "Company") (TSX VENTURE:BYM) announces that it continues to work towards closing its previously announced (August 18th 2009) Letter of Intent with Plaza Gaming and Entertainment Corp. ("Plaza") whereby Plaza will acquire a 75% equity interest in the Company's new Quinte Racetrack and Slots facility ("QRS") in Belleville, Ontario for a gross investment of $6 million. With due diligence and the gaming approval process ongoing, Baymount and Plaza have agreed to extend the Closing Date of the transaction to October 30th 2009.

Mr. Graham Simmonds, President and CEO of Baymount stated, "We are pleased with the progress being achieved with both the due diligence and gaming approvals processes and while there have been some minor delays we remain optimistic that we can close the transaction later this month."

The use of proceeds for the Plaza investment will be to satisfy the balance of the capital requirements to complete the construction of the new QRS and to make payments to the Company's convertible debenture holders. Baymount will also be entitled to receive a bonus payment based on the future performance of the new QRS. The transaction remains subject to due diligence, gaming industry approval and TSX Venture Exchange approval, as well as the approval of Baymount shareholders.

Baymount will continue to hold 100% of the Company's 55 acres of excess lands adjacent to the new QRS in Belleville, Ontario. The Company continues to work with its prospective partners in developing these lands into the Prince Edward Gateway family entertainment destination which plans to feature a new hotel and water park in addition to many other amenities. The company expects to release further disclosure on these developments over the coming weeks.

About Plaza

Plaza is a leading gaming and entertainment company with investments in Community Gaming Centres and Bingo Centres in Canada.

About Baymount

Baymount seeks out and develops opportunities within the horseracing industry. It is the Baymount philosophy to create entertainment destinations for consumers while providing our investors with a vehicle that allows them to participate in the growth of Canadian gaming at racetracks.

Baymount's wholly-owned subsidiary, Belleville Racetrack Development Corporation ("BRDC"), has an agreement with the Belleville Agricultural Society to build a facility to relocate the Quinte Exhibition and Raceway in Belleville, Ontario. QER is one of the 18 racetrack licenses in Ontario eligible to participate in Ontario's Slots-at-Racetracks program. In 2006, the Alcohol and Gaming Commission of Ontario found BRDC suitable to act as Landlord for the proposed OLG gaming premises to be located at the new QER. The Company has also received Preliminary Approval for a License to Operate a Racetrack from the Ontario Racing Commission.

ON BEHALF OF BAYMOUNT INCORPORATED

Graham Simmonds, President & Chief Executive Officer

For additional information please visit the company's website at www.bym.ca.

Forward-looking Statements

This press release contains certain forward-looking statements with respect to the Company. These forward-looking statements, by their nature, involve risks and uncertainties that could cause actual results to differ materially from those contemplated. We consider the assumptions on which these forward-looking statements are based to be reasonable, but caution the reader that these assumptions regarding future events, many of which are beyond our control, may ultimately prove to be incorrect.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of the release.

Contact Information

  • Baymount Incorporated
    Mr. Graham Simmonds
    President and Chief Executive Officer
    416-979-2881 Ext. 223
    graham@bym.ca