SCOTTSDALE, AZ, April 8, 2014 /CNW Telbec/ - Chaparral Gold Corp.
("Chaparral") (TSX: CHL) announces that a settlement has been reached
whereby the Chaparral Shareholder Rights Plan has been cease traded
(cancelled) and Waterton Precious Metals Fund II Cayman, LP
("Waterton") has extended its hostile offer (the "Hostile Bid") to
acquire all of the outstanding common shares of Chaparral from April
11, 2014 to 5:00 p.m. (Toronto time) on April 22, 2014.
In addition, Waterton has also agreed to not take up or pay for any
shares tendered under the 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.
Chaparral continues to actively manage a robust process in pursuit of
value-enhancing alternatives that are in the best interests of the
Chaparral shareholders. This white knight process is now well advanced
and Chaparral's management believes the new deadline of April 22, 2014
will provide sufficient time to announce a value-enhancing alternative
to the Hostile Bid, although there can be no assurance that an
alternative transaction will arise.
Nick Appleyard, CEO of Chaparral, stated "This extension to the Hostile
Bid provides additional time to further advance our white knight
process in pursuit of value-enhancing alternatives to the Hostile Bid.
We are very appreciative of the large number of Chaparral shareholders
who wrote to us in support of our belief that a thorough,
value-enhancing process is in the best interests of all Chaparral
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. 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.
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