Chaparral gold provides update to hostile bid
SCOTTSDALE, AZ, Feb. 21, 2014 /CNW Telbec/ – The Board of Directors (the “Board”) of Chaparral Gold Corp. (“Chaparral” or “Company”) (TSX: CHL) has received the take-over bid circular published by Waterton Precious Metals Fund II Cayman, LP (“Waterton”) regarding its unsolicited hostile take-over bid (the “Hostile Bid”) to acquire 100% of the common shares of the Company.
The Board met on February 20, 2014, to commence its review of the Hostile Bid and appointed a special committee consisting of three independent members of the Board to consider the Hostile Bid and potential alternative transactions, and make further recommendations to the Board.
As noted in the Company’s news release of February 18, 2014, net of the Company’s estimated working capital, the Hostile Bid implies negative value for the Company’s mineral properties, which are at an advanced stage of exploration and are located in a mining-friendly jurisdiction. The Board is intent on delivering the maximum possible value for shareholders and all stakeholders, and is therefore committed to pursuing all possible options available to the Company in furtherance of that goal.
The Company will update its shareholders following the Board of Directors’ meeting that will be held to review the recommendations of the special committee later next week. In the meantime, shareholders are urged to take no actions in connection with the Waterton offer at this time.
The Company has engaged Maxit Capital LP as its financial advisors and Axium Law Corporation as its legal advisors to assist in responding to this unsolicited takeover attempt.
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 February 18, 2014, the Company had 117,636,376 common shares issued and outstanding.
At December 31, 2013, Chaparral had estimated working capital (unaudited) 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 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. 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:
Scott Brunsdon or Nick Appleyard
Tel: 1 480 425 2014 or
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 protected]
Web Site: http://www.chaparralgold.com