SCOTTSDALE, AZ, April 17, 2014 /CNW Telbec/ - Chaparral Gold Corp.
("Chaparral") (TSX: CHL) announces that the British Columbia Securities
Commission has granted a cease trade order cancelling the Chaparral
Shareholder Rights Plan. This now completes the settlement reached
between Chaparral and Waterton Precious Metals Fund II Cayman, LP
("Waterton"). For more information see Chaparral press releases dated
April 8 and 14, 2014.
Waterton has agreed not take up or pay for any shares tendered under its
Hostile Bid and 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 (Toronto time) on April 22, 2014. Waterton's offer
price of C$0.50 per share and all other conditions under the Hostile
Bid remain unchanged.
There is no change in the Board's recommendation that Shareholders REJECT the Hostile Bid by Waterton and DO NOT TENDER their Common Shares.
Eureka Smelter Sites
The Company previously disclosed in its annual public disclosure
documents for the year ended December 31, 2013 certain correspondence
received by the Company's wholly-owned indirect subsidiary Metallic
Ventures (U.S.) Inc. ("Metallic") from the United States Environmental
Protection Agency ("EPA") related to contamination at historical
smelter sites from the late 1800s near the town of Eureka in central
Nevada. The EPA has recently requested a meeting with Metallic to
further discuss Metallic's potential responsibility in this matter.
Metallic does not own and has never operated the sites under
investigation and its current involvement is determined by the EPA to
be as the corporate successor of the Richmond-Eureka Mining Company
formed in 1905 which may itself have been a corporate successor to
former owners and operators. Metallic has not accepted any
responsibility with respect to this issue and continues to thoroughly
evaluate the EPA's position with respect to Metallic's involvement.
To date, the EPA has not indicated that Metallic has any liability with
respect to this matter nor has the EPA made any demand for compensation
from Metallic. At the present time, it is impossible to ascertain if
Metallic has, or may have, any responsibility for assisting in the
remediation of the sites.
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
Waterton Hostile Bid 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 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, 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 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: firstname.lastname@example.org
Web Site: www.chaparralgold.com