|Century Casinos, Inc. has announced that its 50% owned subsidiary, Rhino Resort Limited, has been awarded the sixth casino license serving the Johannesburg region of the Gauteng province of South Africa. The award they received will be the final one given.|
The issue and license are to follow certain procedural requirements, which will include the finalization of financing documentation and agreement to certain terms and conditions. Rhino had also announced that it had secured preliminary and conditional commitments for funding from Nedcor Investment Bank.
Century is to contribute R40 million (the equivalent of approximately 4.1 million) for its ownership interest when the license is issued. This will be funded from the company’s existing cash and line-of-credit facilities. Construction of the first phase of the casino is expected to begin immediately after the issue of the license and gaming operations are expected to begin within less than twelve months thereafter. The casino will cost approximately $40 million to build and will contain up to 700 slot machines and 30 gaming tables.
Chairman and CEO, Erwin Haitzmann, said, “We are delighted that our continued pursuit of this opportunity in greater Johannesburg has come to fruition. In an estimated $300 million gaming market, it is an exciting project in its own right but also serves to validate our long-term commitment to growing the Company in the South African market; a strategy that saw us first establish a springboard for expansion with the Caledon Casino, Hotel & Spa in Western Cape.”