Sun Valley Gold LLC

February 24, 2011 19:02 ET

Sun Valley Gold LLC: Control and Direction Over Common Shares of Rye Patch Gold Corp.

SUN VALLEY, IDAHO--(Marketwire - Feb. 24, 2011) - Sun Valley Gold LLC ("Sun Valley") announced today that it has acquired control and direction over 2,000,000 common shares (each, a "Common Share") of Rye Patch Gold Corp. ("Rye Patch") on behalf of Sun Valley Gold Master Fund, Ltd. (the "Master Fund"), a client account over which it has discretionary trading authority. The Common Shares, which are beneficially owned by the Master Fund, were acquired pursuant to the exercise of 2,000,000 common share purchase warrants issued to the Master Fund on February 23, 2009 (each, a "Warrant"), each of which entitled the holder to purchase one Common Share at a price of $0.15 per share.

Following the exercise of Warrants on February 23, 2011, Sun Valley exercises control and direction over 18,583,334 Common Shares and 625,000 common share purchase warrants for and on behalf of the Master Fund. The 18,583,334 Common Shares over which Sun Valley exercises control and direction for and on behalf of the Master Fund represent approximately 15.0% of the issued and outstanding Common Shares. If exercised, the 625,000 common share purchase warrants over which Sun Valley exercises control and direction for and on behalf of the Master Fund would, together with the 18,583,334 Common Shares over which Sun Valley exercises control and direction for and on behalf of the Master Fund, represent approximately 15.4% of the issued and outstanding Common Shares (after giving effect to the exercise of such common share purchase warrants, but not the exercise of any other common share purchase warrants issued by the Issuer).

The sole shareholders of the Master Fund are Sun Valley Gold International, Ltd., of which Sun Valley is the Investment Manager, and Sun Valley Gold, L.P., of which Sun Valley is the General Partner. Sun Valley manages investment accounts for the Master Fund, and has discretionary trading authority of the securities of Rye Patch issued to the Master Fund.

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

FOR FURTHER INFORMATION, OR TO OBTAIN A COPY OF THE EARLY WARNING REPORT FILED BY SUN VALLEY AND THE MASTER FUND UNDER APPLICABLE SECURITIES LEGISLATION, PLEASE SEE THE CONTACT INFORMATION BELOW:

Contact Information

  • Sun Valley Gold LLC
    Linda J. Kish
    Chief Legal Officer
    (208) 726-2399
    (208) 726-0842 (FAX)