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 shareholders."
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
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