Sun Valley Gold LLC

March 06, 2009 14:21 ET

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

SUN VALLEY, IDAHO--(Marketwire - March 6, 2009) - Sun Valley Gold LLC ("Sun Valley") announced today that it has, on behalf of client accounts over which it has discretionary trading authority, acquired control and direction over 12,000,000 units ("Units") of Romarco Minerals Inc. ("Romarco"). Each Unit consists of one common share of Romarco and one half of one common share purchase warrant (a "Warrant"). Each whole Warrant entitles the holder to purchase one Common Share at $0.60 per share until March 3, 2011. The Units were acquired from treasury pursuant to a private placement (the "Private Placement") of 72,100,000 Units on March 3, 2009.

Upon completion of the Private Placement, Sun Valley exercises control and direction over an aggregate of 95,316,547 common shares of Romarco, representing approximately 34.9% of the issued and outstanding common shares of Romarco, and 46,962,642 share purchase warrants of Romarco. If exercised, the 46,962,642 share purchase warrants of Romarco over which Sun Valley exercises control and direction would represent, together with the 95,316,547 common shares of Romarco over which Sun Valley exercises control and direction, approximately 44.4% of the issued and outstanding common shares of Romarco.

Sun Valley Gold Master Fund, Ltd. (the "Master Fund") is the beneficial owner of 68,134,447 of the common shares of Romarco and 31,785,142 of the share purchase warrants of Romarco over which Sun Valley exercises control and direction. The common shares of Romarco beneficially owned by the Master Fund represent approximately 24.9% of the issued and outstanding common shares of Romarco. If exercised, the 31,785,142 share purchase warrants of Romarco beneficially owned by the Master Fund would represent, together with the 68,134,447 common shares of Romarco beneficially owned by the Master Fund, approximately 32.8% of the issued and outstanding common shares of Romarco. 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.

Loews Corporation ("Loews") is the beneficial owner of 17,765,500 of the common shares of Romarco and 11,265,500 of the share purchase warrants of Romarco over which Sun Valley exercises control and direction. The common shares of Romarco beneficially owned by Loews represent approximately 6.5% of the issued and outstanding common shares of Romarco. If exercised, the 11,265,500 share purchase warrants of Romarco beneficially owned by Loews would represent, together with the 17,765,500 common shares of Romarco beneficially owned by Loews, approximately 10.2% of the issued and outstanding common shares of Romarco.

The balance of the common shares and share purchase warrants of Romarco over which Sun Valley exercises control and direction are beneficially owned by arm's-length clients on behalf of whom Sun Valley manages investment accounts.

The Units were acquired for investment purposes. Sun Valley and its clients 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)