Sun Valley Gold LLC

May 07, 2009 15:19 ET

Sun Valley Gold LLC: Decrease in Ownership Interest in Avion Resources Corp.

SUN VALLEY, IDAHO--(Marketwire - May 7, 2009) - Sun Valley Gold LLC ("Sun Valley") announced today that its ownership interest in Avion Resources Corp. ("Avion") has decreased to less than 5% as a consequence of an increase in the number of issued and outstanding common shares of Avion. In May 2008, Sun Valley acquired control and direction over 6,000,000 common shares and 3,000,000 common share purchase warrants of Avion on behalf of client accounts over which it has discretionary trading authority. At the time of such acquisition, the 6,000,000 common shares and 3,000,000 warrants over which Sun Valley acquired direction and control represented approximately 11.44% of the issued and outstanding common shares of Avion (assuming the exercise of the 3,000,000 warrants over which Sun Valley acquired direction and control). Following the completion of a private placement by Avion on January 12, 2009, pursuant to which Avion issued 37,500,000 common shares, and the completion of the acquisition by Avion of Dynamite Resources Ltd. ("Dynamite") on May 6, 2009, pursuant to which the Issuer issued 85,151,250 Common Shares to former shareholders of Dynamite, the 6,000,000 common shares and 3,000,000 warrants over which Sun Valley exercises direction and control represent approximately 4.47% of the issued and outstanding common shares of Avion (assuming the exercise of the 3,000,000 warrants over which Sun Valley exercises direction and control).

The securities of Avion over which Sun Valley exercises direction and control are beneficially owned by Sun Valley Gold Master Fund, Ltd., the sole shareholders of which 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, and arm's-length clients on behalf of whom Sun Valley manages investment accounts. All such securities were acquired for investment purposes. Sun Valley and its clients may increase or decrease their ownership of securities of Avion depending upon future market conditions.

Contact Information

  • Sun Valley Gold LLC
    Mr. Peter F. Palmedo
    President
    (208) 726-2327
    (208) 726-2469 (FAX)