JOHANNESBURG, South Africa--(BUSINESS WIRE)--June 27, 2005-- Centurion Gold Holdings, Inc. (OTCBB:CGHI), the only South African junior gold mining company publicly listed in the U.S., announced today that its Board of Directors is considering an offer for the purchase of the entire issued, and to be issued, share capital of Centurion Gold Holdings, Inc. The offer is valued at $0.45 cents per share, 104% above Centurion Gold Holdings' closing price of $0.22 per share on June 24, 2005. The offer values Centurion Gold at approximately $67.6 million. The buy out offer comes from a publicly-traded natural resources company involved in exploration and mining. Under the proposed offer, the structure of the post-acquisition company would include two key Centurion executives. Centurion's Chairman and CEO, Dale Paul, would serve as the merged company's Chief Executive Officer and Centurion's CFO, Arthur Johnson, would serve as a non-executive Director. "We are pleased to receive an offer for Centurion Gold that values us at more than twice our current trading price," stated Mr. Dale Paul, CEO and Chairman of Centurion Gold Holdings. "Our board is currently evaluating the offer and its potential benefits for our shareholders." Full disclosure of the company making the buy out offer will be made available in the event that Centurion's board of directors accepts the offer.
About Centurion Gold Holdings, Inc.:
Centurion Gold Holdings is the only South African junior gold mining company publicly listed in the United States. The Company is executing a roll-up strategy acquiring proven mineral assets, "growth through acquisition"; these assets consist of near revenue stream and existing low-cost production operations with turnaround opportunities. Based in South Africa, the Company is ideally suited to exploit new legislation implemented by the government in May 2004. This legislation enforces a "use it or lose it" strategy, whereby all mining claims must be prospected within a designated time frame; otherwise, such prospects revert to the state, thereby creating never-before-seen opportunities, particularly for smaller companies like Centurion. The Company has built a strong team of experienced management and operations mining professionals to exploit these opportunities, and is positioning itself to become a major producer by continually implementing its "growth through acquisition" strategy.
Statements about the Company's future expectations, including future revenues and earnings, and all other statements in this press release other than historical facts are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and as the term is defined in the Private Securities Litigation Reform Act of 1995. The company's actual results could differ materially from expected results. The Company undertakes no obligation to update forward-looking statements to reflect subsequently occurring events or circumstances. Should events occur which materially affect any comments made within this press release the Company will appropriately inform the public.
KEYWORD: AFRICA/MIDDLE EAST SOUTH AFRICA INDUSTRY KEYWORD: NATURAL RESOURCES MINING/MINERALS PRODUCT/SERVICE SOURCE: Centurion Gold Holdings, Inc.
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