SCOTTSDALE, AZ, March 12, 2014 /CNW Telbec/ - Chaparral Gold Corp.
("Chaparral" or the "Company") (TSX: CHL) announced today that, further
to its news release dated February 25, 2014 regarding the adoption of
its shareholder rights plan (the "Plan"), it has received notification
from the Toronto Stock Exchange ("TSX") that the TSX will defer its
consideration of acceptance of the Plan until such time as the TSX is
satisfied that the applicable Canadian securities regulator will not
intervene in any takeover bid for the Company pursuant to National
Policy 62-202 - Take-Over Bids - Defensive Tactics.
The Company adopted the Plan in response to the hostile take-over bid
commenced by Waterton Precious Metals Fund II Cayman, LP ("Waterton")
on February 19, 2014, to acquire all of the outstanding common shares
of the Company. The Plan was adopted to allow sufficient time to seek
alternative proposals to Waterton's hostile take-over bid in order to
enhance shareholder value and to ensure that all of the Company's
shareholders are treated fairly in any transaction involving a possible
change of control of Chaparral.
The Plan remains subject to receipt of shareholder approval and the
approval of the TSX. The Company intends to submit the Plan for
approval by the Company's shareholders at its planned Annual General
Meeting in May 2014.
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. As at March 6, 2014, the Company had 117,636,376
Common Shares issued and outstanding.
At December 31, 2013, Chaparral had estimated working capital of C$59.7
million (including cash and equivalents of C$49.0 million).
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
Waterton's hostile take-over bid and the shareholder rights plan. 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 Waterton's hostile take-over bid,
or potential amendments to the terms of the hostile take-over 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