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United States : GOLDROCK to acquire CHAPARRAL GOLD.

Chaparral Gold has inked a deal with Waterton Precious Metals Fund II Cayman and Goldrock Mines.

As per the agreement, Goldrock is to acquire Chaparral. This acquisition deal represents a total equity value of around C$73.4 million for Chaparral on a fully diluted basis.

The company said, The offer price represents a premium of 49.4% to the volume weighted average price of the Chaparral Shares on the TSX for the 20 trading days ended February 14, 2014 (the last trading day prior to the announcement of Waterton s previous take-over offer for Chaparral) and a premium of 19.6% to the closing price of the Chaparral Shares on the TSX on October 8, 2014.

It added, The Arrangement Agreement also provides that in the event that Chaparral receives the US$5 million installment of the receivable relating to the Rio Blanco property in Ecuador on or before December 29, 2014, the consideration will be increased by C$0.02 per Chaparral Share in cash to C$0.63 per Chaparral Share.

Chaparral CEO, Nick Appleyard, said, After a thorough process to consider all of our alternatives, including Waterton s prior unsolicited bid, we are pleased to have been able to agree on a mutually beneficial transaction representing a successful conclusion to our value maximization process. We believe this is a fair transaction for Chaparral shareholders that provides an attractive premium for their shares in the current market and certainty of value given the all-cash consideration.

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Publication:Mena Report
Date:Oct 11, 2014
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