Sun Valley Gold LLC

November 18, 2010 16:49 ET

Sun Valley Gold LLC: Control and Direction Over Common Shares of Grayd Resource Corporation

SUN VALLEY, IDAHO--(Marketwire - Nov. 18, 2010) - Sun Valley Gold LLC ("Sun Valley") announced today that it has acquired control and direction over 2,500,000 common shares (each, a "Common Share") of Grayd Resource Corporation ("Grayd") on behalf of Sun Valley Gold Master Fund, Ltd. (the "Master Fund"), a client account over which Sun Valley has discretionary trading authority. The Common Shares, which are beneficially owned by the Master Fund, were acquired on November 17, 2010 as part of a private placement by Grayd (the "Private Placement") of a total of 4,800,000 Common Shares for a subscription price of $1.25 per Common Share.

Following the completion of the Private Placement, Sun Valley exercises control and direction over 9,715,000 Common Shares for and on behalf of the Master Fund. The 9,715,000 Common Shares over which Sun Valley exercises control and direction for and on behalf of the Master Fund represent approximately 11.26% of the issued and outstanding Common Shares.

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 Grayd 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 Grayd 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
    Mr. Peter F. Palmedo
    President
    (208) 726-2327
    (208) 726-2469 (FAX)