Sun Valley Gold LLC

August 28, 2012 19:51 ET

Sun Valley Gold LLC: Control and Direction Over Common Shares and Warrants of Sarama Resources Ltd.

SUN VALLEY, IDAHO--(Marketwire - Aug. 28, 2012) - Sun Valley Gold LLC ("Sun Valley") announced today that on November 2, 2011 it acquired control and direction over 4,500,000 units ("Units") of Sarama Resources Ltd. ("Sarama Resources") on behalf of Sun Valley Gold Master Fund, Ltd. (the "Master Fund"), a client account over which it has discretionary trading authority. The Units were acquired as part of the initial public offering of Sarama Resource for a subscription price of $0.90 per Unit. Each Unit consists of one common share ("Common Share") of Sarama Resources and one half of one common share purchase warrant (a "Warrant"). Each Warrant entitles the holder to purchase one Common Share at a price of $1.20 per share until November 2, 2013.

Following completion of the initial public offering, Sun Valley exercises control and direction over an aggregate of 6,000,000 Common Shares and 2,250,000 Warrants, in each case for and on behalf of the Master Fund. The 6,000,000 Common Shares over which Sun Valley exercises control and direction for and on behalf of the Master Fund represent approximately 11.65% of the issued and outstanding Common Shares. If exercised, the 2,250,000 Warrants over which Sun Valley exercises control and direction for and on behalf of the Master Fund would, together with the 6,000,000 Common Shares over which Sun Valley exercises control and direction for and on behalf of the Master Fund, represent approximately 15.35% 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 Sarama Resources).

The sole holders of common shares 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 is the investment manager for the Master Fund, and has discretionary trading authority over the securities of Sarama Resources issued to the Master Fund.

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