SUN VALLEY, IDAHO--(Marketwired - Oct. 22, 2013) - Sun Valley Gold LLC ("Sun Valley") announced today that it has acquired control and direction over 8,700,000 special warrants ("Special Warrants") of Klondex Mines Ltd. ("Klondex") on behalf of client accounts over which Sun Valley has discretionary trading authority. The Special Warrants were acquired pursuant to a private placement by Klondex of a total of 14,200,000 Special Warrants for a subscription price of $1.37 per Special Warrant. Subject to adjustment in certain circumstances, each Special Warrant entitles the holder to receive upon exercise or deemed exercise one common share of Klondex (a "Common Share") for no additional consideration. Special Warrants not already exercised will be deemed exercised on the earlier of (i) the third business day after the date of receipt for a final short form prospectus to qualify the distribution of the Common Shares to be issued upon exercise or deemed exercise of the Special Warrants and (ii) February 17, 2014.
Sun Valley exercises control and direction over the 8,700,000 Special Warrants acquired pursuant to the private placement, but does not directly or indirectly own or exercise control or direction over any other securities of Klondex. If exercised, the 8,700,000 Special Warrants over which Sun Valley exercises control and direction for and on behalf of client accounts would represent approximately 11.80% of the issued and outstanding Common Shares (after giving effect to the exercise of such Special Warrants, but not the exercise of any other Special Warrants issued pursuant to the private placement or any other share purchase warrants previously issued by Klondex).
The securities of Klondex were acquired for investment purposes. Sun Valley may increase or decrease its ownership of securities of Klondex depending upon future market conditions.
FOR FURTHER INFORMATION, OR TO OBTAIN A COPY OF THE EARLY WARNING REPORT FILED BY SUN VALLEY UNDER APPLICABLE SECURITIES LEGISLATION, PLEASE SEE THE CONTACT INFORMATION BELOW.