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.
Cautionary Statements:
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