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
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