Sun Valley Gold LLC

June 17, 2009 14:58 ET

Sun Valley Gold LLC: Control and Direction Over Common Shares and Warrants of Northern Freegold Resources Ltd.

SUN VALLEY, IDAHO--(Marketwire - June 17, 2009) - Sun Valley Gold LLC ("Sun Valley") announced today that it has acquired control and direction over 6,250,000 units ("Units") of Northern Freegold Resources Ltd. ("Northern Freegold") on behalf of Sun Valley Gold Master Fund, Ltd. (the "Master Fund"), a client account over which it has discretionary trading authority. Each Unit consists of one common share of Northern Freegold and one half of one common share purchase warrant (a "Warrant"). Each whole Warrant entitles the holder to purchase one common share of Northern Freegold at a subscription price of $0.75 per share until June 16, 2011. The Units were acquired from treasury pursuant to a private placement (the "Private Placement") of 10,000,000 Units on June 16, 2009.

Neither Sun Valley nor the Master Fund held or exercised control or direction over any securities of Northern Freegold prior to completion of the Private Placement. Upon completion of the Private Placement, the 6,250,000 common shares over which Sun Valley acquired direction and control for and on behalf of the Master Fund represent approximately 9.97% of the issued and outstanding common shares of Northern Freegold. If exercised, the 3,125,000 warrants over which Sun Valley acquired direction and control for and on behalf of the Master Fund would, together with the 6,250,000 common shares over which Sun Valley acquired direction and control for and on behalf of the Master Fund, represent approximately 14.24% of the issued and outstanding common shares of Northern Freegold.

The Units were acquired for investment purposes. Sun Valley and the Master Fund may increase or decrease their ownership of securities of Romarco depending upon future market conditions.

Contact Information

  • Sun Valley Gold LLC
    Mr. Peter F. Palmedo
    President
    (208) 726-2327
    (208) 726-2469 (FAX)