TORONTO – A precious metals fund managed by the Waterton Group has increased its hostile offer for Chaparral Gold Corp. (TSX:CHL) by 10 per cent and dropped a requirement that the buyers get at least two-thirds of the company’s shares.
Waterton said the new offer will be open until July 31, two weeks after the July 17 deadline which it previously said would be the “final extension” of earlier offer of 50 cents per share.
The new offer of 55 cents per Chaparral share values the company at $64.7 million, up $5.9 million.
The stock closed Thursday at 52 cents per share on the Toronto Stock Exchange, but the shares are up from 43.5 cents on Feb. 14 before Waterton’s original offer.
Chaparral Gold has repeatedly rejected the Waterton bid, saying it would pursue value enhancing alternatives that were in the best interests of shareholders.
Waterton Global Resource Management is a mining focused private equity money manager based in Toronto.
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 in Nevada.