TORONTO, ONTARIO--(Marketwire - July 23, 2012) - Baymount Incorporated ("Baymount" or the "Company") (TSX VENTURE:BYM) previously announced on May 4th 2012 that its wholly-owned subsidiary, Belleville Racetrack Development Corporation ("BRDC"), had received a formal notice of termination of its Site Holder Agreement (originally executed on October 23, 2006) with the Ontario Lottery and Gaming Corporation ("OLG"). The Government of Ontario and the OLG announced earlier this year a significant change to the provincial gaming policy with the elimination of the "Slots-at-Racetracks" program. This change is part of a larger modernization plan for lottery and gaming in the province of Ontario. This modernization also includes a planned Casino for the Quinte West/Belleville area, which would effectively replace the planned Racetrack and Slots facility that was being developed by BRDC.
In the termination letter received by BRDC, the OLG suggested the parties meet to discuss the relevant financial considerations pursuant to the Site Holder Agreement. In the meantime, the Company has prepared an outline of the costs incurred, excluding land costs, and has submitted this to the OLG in advance of a meeting for discussion purposes. OLG formally responded by letter to the Company on Friday July 20th with a proposal that was far below the Company's costs incurred on this project. The Site Holder Agreement calls for mediation as the first step to a resolution of any disputes. The Company plans to pursue mediation while also evaluating potential litigation against OLG and others.
The OLG's proposal that the Company not receive adequate compensation or significant recouping of expenses is unacceptable, and the Company will take all necessary steps to resolve this situation in the best interests of its Stakeholders.
In 2004, BRDC entered into an agreement with the Belleville Agricultural Society to build a facility to relocate the Quinte Exhibition and Raceway ("QER") in Belleville, Ontario. QER was one of the 18 racetrack licenses in Ontario eligible to participate in Ontario's "Slots-at-Racetracks" program. With the cancelation of the "Slots-at-Racetracks" program and the termination of BRDC's Site Holder Agreement with OLG, the Company will need to fully reevaluate its current business plans and will pursue all available legal recourse against the OLG and others to protect the interest of its Stakeholders.
Baymount seeks out and develops opportunities within the horse racing industry. The Company is reevaluating its current business plans due to significant changes to government gaming policy within the Province of Ontario.
ON BEHALF OF BAYMOUNT INCORPORATED
Graham Simmonds, President & Chief Executive Officer
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.
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