Sun Valley Gold LLC



March 16, 2012 17:49 ET

Sun Valley Gold LLC: Control and Direction Over Common Shares and Warrants of Strongbow Exploration Inc.

SUN VALLEY, IDAHO--(Marketwire - March 16, 2012) - Sun Valley Gold LLC ("Sun Valley") announced today that it has acquired control and direction over 2,700,000 units ("Units") of Strongbow Exploration Inc. ("Strongbow") on behalf of Sun Valley Gold Master Fund, Ltd. (the "Master Fund"), a client account over which Sun Valley has discretionary trading authority. The Units, which are beneficially owned by the Master Fund, were acquired as part of a private placement by the Issuer of a total of 8,900,000 Units for a subscription price of $0.13 per Unit. Each Unit consists of one common share (a "Common Share") of Strongbow and one common share purchase warrant (a "Warrant"). Each whole Warrant entitles the holder to purchase one Common Share at a price of $0.20 per share until September 9, 2013.

Following completion of the private placement, Sun Valley exercises control and direction over an aggregate of 15,700,000 Common Shares and 2,700,000 Warrants for and on behalf of the Master Fund. The 15,700,000 Common Shares over which Sun Valley exercises control and direction for and on behalf of the Master Fund represent approximately 17.24% of the issued and outstanding Common Shares. If exercised, the 2,700,000 Warrants over which Sun Valley exercises control and direction for and on behalf of the Master Fund would, together with the 15,700,000 Common Shares over which Sun Valley exercises control and direction for and on behalf of the Master Fund, represent approximately 19.62% 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 pursuant to the private placement or any other share purchase warrants previously issued by Strongbow).

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 Strongbow issued to the Master Fund.

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