Chaparral Gold - Further Extension of Hostile Bid by Waterton
SCOTTSDALE, AZ, May 21, 2014 /CNW Telbec/ - Chaparral Gold Corp. (TSX: CHL) ("Chaparral") announces that Waterton Precious Metals Fund II Cayman, LP ("Waterton") has again extended its hostile offer (the "Hostile Bid") to acquire all of the outstanding common shares of Chaparral from May 21, 2014 to 5:00 p.m. (Toronto time) on June 3, 2014. The offer price of C$0.50 per share and all other conditions under the Hostile Bid remain unchanged. As stated in Waterton's Notice of Extension of May 21, 2014 only 741,264 shares have tendered to their bid, representing only approximately 0.6% of the outstanding shares of Chaparral.
Chaparral continues to pursue value-enhancing alternatives that are in the best interests of the Chaparral shareholders, although there can be no assurance that an alternative transaction will arise. In addition, Chaparral recently entered into a confidentiality agreement with Waterton to allow access to additional information relating to Chaparral.
There is no change in the Board of Directors of Chaparral recommendation that shareholders REJECT the Hostile Bid and DO NOT tender their shares.
About Chaparral Gold
Chaparral is a Nevada-focused precious metals company actively permitting the 100%-owned Gemfield deposit at the Goldfield property, in central Nevada. In addition, Chaparral holds a 100% interest in the advanced-stage Converse property, also located in Nevada.
Some of the statements contained in this release are "forward-looking statements" within the meaning of Canadian securities law requirements, including statements relating to the Company's plans in respect of the Hostile Bid and in respect of its Goldfield property. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from anticipated results include risks and uncertainties such as: risks relating to potential amendments to the terms of the Hostile Bid by Waterton and risks of arriving at an alternative transaction. Except as required pursuant to applicable securities laws, the Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
SOURCE Chaparral Gold CorpFor further information:
In North America:
Tel: 1 480 483 9932
Renmark Financial Communications
Tel: 1 514 939 3989