Sun Valley Gold LLC

November 04, 2011 19:15 ET

Sun Valley Gold LLC: Control and Direction Over Common Shares and Warrants of Andina Minerals Inc.

SUN VALLEY, IDAHO--(Marketwire - Nov. 4, 2011) - Sun Valley Gold LLC ("Sun Valley") announced today that it has acquired control and direction over 12,500,000 units ("Units") of Andina Minerals Inc. ("Andina") on behalf of client accounts, including the Sun Valley Gold Master Fund, Ltd. (the "Master Fund"), over which it has discretionary trading authority. The Units were acquired as part of a private placement by the Issuer of a total of 18,750,000 Units for a subscription price of $0.80 per Unit. Each Unit consists of one common share ("Common Share") of the Issuer and one half of one common share purchase warrant. Each whole warrant entitles the holder to purchase one Common Share at a price of $1.00 per share until November 2, 2012. Of the 12,500,000 Units over which Sun Valley acquired control and direction in the private placement, 9,375,000 are beneficially owned by the Master Fund.

Following completion of the private placement, Sun Valley exercises control and direction over an aggregate of 18,007,392 Common Shares and 8,400,000 warrants for and on behalf of client accounts. The 18,007,392 Common Shares over which Sun Valley exercises control and direction represent approximately 13.93% of the issued and outstanding Common Shares. If exercised, the 8,400,000 warrants to purchase Common Shares would, together with the 18,007,392 Common Shares over which Sun Valley exercises control and direction, represent approximately 19.18% of the issued and outstanding Common Shares (after giving effect to the exercise of such warrants, but not the exercise of any other warrants issued by Andina).

The Master Fund beneficially owns 12,644,430 of the Common Shares and 6,043,600 of the warrants described in the preceding paragraph. The 12,644,430 Common Shares beneficially owned by the Master Fund represent 9.78% of the issued and outstanding Common Shares. If exercised, the 6,043,600 warrants beneficially owned by the Master Fund would, together with the 12,644,430 Common Shares beneficially owned by the Master Fund, represent approximately 13.81% of the issued and outstanding Common Shares (after giving effect to the exercise of such warrants, but not the exercise of any other warrants issued by Andina).

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 over the securities of Andina issued to the Master Fund.

The securities of Andina were acquired for investment purposes. Sun Valley and the Master Fund may increase or decrease their ownership of securities of Andina 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)