Mr. Nick Appleyard reports
CHAPARRAL GOLD CORPORATE UPDATE
The British Columbia Securities
Commission has granted a cease trade order cancelling Chaparral Gold Corp.'s shareholder rights plan. This now completes the settlement reached
between Chaparral and Waterton Precious Metals Fund II Cayman LP. 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 p.m. (Toronto time) on April 22, 2014. Waterton's offer
price of 50 cents 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 Dec. 31, 2013, certain correspondence
received by the company's wholly owned indirect subsidiary, Metallic
Ventures (U.S.) Inc., from the United States Environmental
Protection Agency 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.
We seek Safe Harbor.
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