Baymount Incorporated, through its wholly-owned subsidiary Belleville Racetrack Development Corporation (BRDC), has 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)
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The Government of Ontario and the OLG recently announced a significant change to the provincial gaming policy with the planned 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. As such, the OLG has terminated the Site Holder Agreement with BRDC effective immediately. Baymount and OLG have agreed to meet to discuss the relevant financial considerations pursuant to the Site Holder Agreement.
BRDC has 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 cancellation of the Slots-at-Racetracks program and the termination of BRDC's Site Holder Agreement with OLG, Baymount will need to fully re-evaluate its current business plans.
Effective immediately, Baymount's proposed transaction with Nevada Exploration Inc. (NGE), whereby Baymount planned to earn a joint venture interest in NGE's Fletcher Junction Gold Project, in Mineral County, Nevada, has been terminated. The planned transaction with NGE constituted a "Change of Business" for Baymount; as such term is defined and understood under the rules and policies of the TSX Venture Exchange. Baymount will not pursue a "Change of Business" at this time and will focus its efforts on evaluating its current assets and concluding its development business in Belleville, Ontario.
(With files from Baymount)