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Ameristar acquired the property from Windsor Woodmont Black Hawk Resort Corp., which was operating under debtor ownership in Chapter 11 of the U.S. District Bankruptcy Court in Colorado. The purchase price was approximately $117 million in cash, and Ameristar's issuance of 58,943 common shares was $2.5 million.
Ameristar plans to invest approximately $90 million in capital expenditures to improve the competitiveness of the property. Capital improvements include reorganizing and expanding the gaming realm, introducing cashless slot technology and other gaming equipment upgrades, constructing a 300-room AAA Four Diamond quality hotel and additional covered parking, upgrading food and beverage stores, and adding casual dining restaurants. All of these improvements are expected to be completed sometime in 2005, with the exception of hotels expected to be completed by early 2007.
The company plans to rebrand the property as the Amerista Blackhawk once the first phase of improvement is completed. Like all Amerista properties, the Amerista Blackhawk will offer state-of-the-art gaming venues, a variety of high-quality dining and entertainment venues, and excellent guest services.
"We are excited to complete the acquisition of Mountain High Casino," said Craig H. Neilsen, president and CEO of Ameristar. "Mountain High is a high-quality property with an excellent location in one of the major gaming markets in the United States. We are eager to launch plans to improve and expand the property immediately. The acquisition will not affect our ability to continue our cash dividend policy or pursue other development opportunities."
Mountain High Casino is an upscale gaming and entertainment facility located in the center of the Black Hawk Gaming District, about 40 miles west of Denver. The 425,000-square-foot facility features a 57,000-square-foot casino with approximately 1,000 slot machines and 24 table games (including pointers). Additionally, the property has a steak and seafood restaurant, a buffet and food court, a 5,000-square-foot entertainment showroom that can accommodate approximately 500 people, and a parking lot that can accommodate 800 vehicles.
Thursday, February 1, 2024