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Waterton Group extends $58.8M hostile takeover bid for Chaparral Gold

SCOTTSDALE, Ariz. - Chaparral Gold Corp. (TSX:CHL) says a precious metals fund managed by the Waterton Group has again extended its hostile takeover bid for the company.

The bid of 50 cents per Chaparral share, which values the company at $58.8 million, was first made in February.

It has since been extended several times, most recently to May 21, but now has been further extended until 5 p.m. ET on June 3, Chaparral said in a statement issued Wednesday.

"As stated in Waterton's notice of extension . . . only 741,264 shares have tendered to their bid, representing only approximately 0.6 per cent of the outstanding shares of Chaparral," the miner said.

The company said there has been no change in recommendation of the board of directors that shareholders reject the Waterton bid and that it continues to pursue value-enhancing alternatives that are in the best interests of the Chaparral shareholders.

"In addition, Chaparral recently entered into a confidentiality agreement with Waterton to allow access to additional information relating to Chaparral," it said.

Chaparral is a Nevada-focused precious metals company actively permitting its 100 per cent owned Gemfield deposit at the Goldfield property in central Nevada. In addition, Chaparral holds a 100 per cent interest in the advanced-stage Converse property, also located in Nevada.

When Waterton first announced its offer, it prompted an immediate 10 per cent increase in the share price to 54 cents. The issue closed at 60 cents Wednesday on the Toronto Stock Exchange.

The precious metals fund is managed by Waterton Global Resource Management, a mining-focused private equity money manager based in Toronto.

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