SCOTTSDALE, AZ, April 14, 2014 /CNW Telbec/ - Chaparral Gold Corp.
("Chaparral" or "Company") (TSX: CHL) provides clarification on the
status of its Shareholder Rights Plan ("SRP").
In a news release dated April 8, 2014 Chaparral announced that it had
reached a settlement with Waterton Precious Metals Fund II ("Waterton")
whereby Waterton had agreed to extend its bid for all of the common
shares of Chaparral (the "Hostile Bid") to 5 p.m. (Eastern Daylight
Time) on April 22, 2014 and Chaparral had agreed to consent to an order
from the British Columbia Securities Commission ("BCSC") to immediately
cease trade (cancel) its SRP.
Waterton requested that the BCSC issue a consent order respecting the
cease trade of the SRP but the BCSC was unable to issue the consent
order at that time. Both parties, however, continue to abide by their
earlier settlement agreement and have requested a hearing be held
before the BCSC on April 16, 2014 to request that the consent order be
issued so that the settlement between Chaparral and Waterton can be
equitably enforced for the benefit of the Chaparral shareholders.
Apart from the extension of the expiry of the Hostile bid to April 22,
2014, Waterton's offer price of C$0.50 per share and all other
conditions under the Hostile Bid remain unchanged. Waterton has agreed
that it will not take up or pay for any shares tendered under the
Hostile Bid and it will not purchase, either directly or indirectly (or
jointly or in concert with any other person) any shares of Chaparral
prior to 2:00 PM (Eastern Daylight Time) on April 22, 2014.
There is no change in the Board's recommendation that Shareholders REJECT the Hostile Bid by Waterton and DO NOT TENDER their Common 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 to the Goldfield property, 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 the planned hearing before the BCSC. 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 of
potential alternative transactions to the Hostile Bid, or potential
amendments to the terms of the Hostile Bid by Waterton, and the results
of the hearing before the BCSC. 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 Corp
For 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