TORONTO – Shares of Chaparral Gold Corp. (TSX:CHL) jumped more than 20 per cent to a new high Tuesday after a precious metal fund managed by the Waterton group made a hostile offer that valued the company at about $58.8 million.
The junior mining company, headquartered in Arizona but listed on the Toronto Stock Exchange since December, advised its shareholders against accepting the offer.
The stock closed at 54 cents, up 10 cents or 24 per cent —a record for Chaparral and above the unsolicited offer.
Waterton Precious Metals Fund II Cayman, LP announced before markets opened Tuesday an offer of 50 cents cash for each of Chaparral’s shares.
Chaparral, which has two Nevada properties including one at the permitting stage, had about 117.6 million shares outstanding as of Feb. 18.
The Waterton fund said it currently owns about 3.4 million Chaparral shares, or about 2.9 per cent of the total.
It said the offer would be open until March 27.
The fund is managed by Waterton Global Resource Management, a mining-focused private equity money manager based in Toronto.