Baymount Incorporated
TSX VENTURE : BYM

Baymount Incorporated

November 21, 2007 09:22 ET

Baymount Secures Construction Financing

TORONTO, ONTARIO--(Marketwire - Nov. 21, 2007) - Baymount Incorporated ("Baymount") (TSX VENTURE:BYM) is pleased to announce that its wholly-owned subsidiary Belleville Racetrack Development Corporation ("BRDC") has entered into a $14.2 million Construction Loan Term Sheet (the "Loan") with a third party for construction of the new Quinte Exhibition and Raceway ("QER"). The Loan will be secured as first mortgage on the project lands and it does not include Baymount's excess lands located adjacent to the new QER location. The Loan, which is subject to final due diligence and documentation, bears interest at prime and has a term of 15 years.

Mr. Graham Simmonds, President and Chief Executive Officer of Baymount stated, "This is a significant milestone for our company and this loan represents substantially all of the funds required to complete this exciting new facility." He added, "We remain very excited to be bringing this significant new development to the City of Belleville. Our management team continues to work closely with the OLG and the City of Belleville to ensure that the new QER is a centre for growth and expansion of the local economy."

The new QER is the eighteenth Ontario racetrack to receive a slot machine allocation under OLG's Slots-at-Racetracks program. The new facility will be constructed on BRDC's Belleville property which is located on Bell Boulevard near the Wallbridge-Loyalist Road and Highway 401 interchange. The planned 75 acre development will feature the new Racino and includes 25 acres for the future location of the new Quinte Exhibition. The cost to complete the construction of the new Slot and Clubhouse facility is budgeted at approximately $15 million.

BRDC also owns an additional 63 acres of future commercial development land adjacent to the new QER development with ten of these acres bordering Highway 401. The company is currently evaluating potential development opportunities for these lands, which may include an outright sale of these additional lands.

Blackmont Capital provided advisory services to Baymount on this transaction.

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.

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 Corporation. 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.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Baymount Incorporated
    Mr. Graham Simmonds
    President and Chief Executive Officer
    (416) 979-2881 Ext.223
    Email: graham@bym.ca
    Website: www.bym.ca