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
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