Diamondhead
Casino Corporation Issues Status Report
Diamondhead Casino Corporation,
which owns approximately 404 acres of land on
the Bay of St. Louis in Diamondhead, Mississippi,
issued its first status report since the Governor
of Mississippi signed a new law on October 17,
2005, which allows casinos to be built on land.
The new law will allow casinos located in certain
areas to be constructed on land no more than
800 feet from the mean high-water line of certain
bodies of water. The new law applies to the
Company's property on the Bay of St. Louis.
The
Company reported that since the new law was
signed, it has received several written proposals
relating to its property. These proposals range
from outright offers to purchase land to joint
venture proposals. The Board of Directors has
rejected several proposals, but is considering
others and management continues to negotiate
with respect to several proposals received.
There can be no assurance that the Board will
find any of these proposals acceptable to the
Company or that further negotiations will lead
to any definitive agreements. The Board intends
to condition any final agreement on approval
of a majority vote of shares entitled to vote
and voting on the issue. The Company believes
that such approval is in the best interest of
its shareholders.
The
Company also reported the unexpected resignation
of Dr. Arnold Sussman, who resigned from the
Company's Board of Directors for health-related
reasons. Dr. Sussman, a significant shareholder,
served as a member of the Board of Directors
since July 2002. Dr. Sussman's contributions
as a Director went far beyond those required
of a Director and his presence on the Board
will be missed.
The
Company, through its wholly-owned subsidiary,
Casino World, Inc., intends to develop a destination
casino resort and hotel, condominiums, and other
amenities at its Diamondhead property. The development
of the Diamondhead, Mississippi project is subject
to risks and uncertainties which include, but
are not limited to, those relating to permitting,
financing, the activities of environmental groups,
the outcome of litigation and the actions of
federal, state, or local governments and agencies.
The Company may be affected by some or all of
these factors and other risks and uncertainties,
many of which are beyond the Company's control.
Except for historical statements contained herein,
the statements made in this release constitute
forward-looking statements that involve risks
and uncertainties. Any references in this press
release to Mississippi law are qualified in
their entirety by reference to the actual text
of the law.
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