Chaparral Gold - Sixth Extension of Hostile Bid by Waterton
SCOTTSDALE, AZ, June 4, 2014 /CNW Telbec/ - Chaparral Gold Corp. ("Chaparral") (TSX: CHL) announces that Waterton Precious Metals Fund II Cayman, LP ("Waterton") has again extended, for the sixth time, its hostile offer (the "Hostile Bid") to acquire all of the outstanding common shares of Chaparral from June 3, 2014 to 5:00 p.m. (Toronto time) on June 17, 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 June 3, 2014 only 742,267 shares have been deposited to their bid, representing approximately 0.6% of the outstanding shares of Chaparral.
Nick Appleyard, CEO of Chaparral, stated "We are actively working to achieve a resolution to the Eureka smelter issue that should allow prospective bidders to move forward with value-enhancing alternatives, although there can be no assurance that an alternative transaction will arise. As stated in our May 30, 2014 press release, we disagree with the EPA's corporate successor conclusions and while we cannot control the EPA schedule, a mutual intent exists to explore the possibility of reaching an expedited resolution of the Eureka issue."
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 Waterton Hostile Bid and potential alternative bids and in respect of the Eureka smelter sites. 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 the emergence or not of potential alternative transactions to the Hostile Bid, or potential amendments to the terms of the Hostile Bid by Waterton or in respect of the Eureka smelter sites and unanticipated actions or positions taken by the EPA. 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
Tel: +41 44 853 00 47
Or email the Company at: email@example.com
Web Site: www.chaparralgold.com