PP Info - Sun ValleySun Valley Gold LLCAug 07, 2009 15:03 ET
Sun Valley Gold LLC: Control and Direction Over Common Shares and Warrants of Rye Patch Gold Corp.
SUN VALLEY, IDAHO--(Marketwire - Aug.7, 2009) - Sun Valley Gold LLC ("Sun Valley") announced today that ithas acquired control and direction over 6,666,667 units ("Units") ofRye Patch Gold Corp. ("Rye Patch") on behalf of Sun Valley Gold MasterFund, Ltd. (the "Master Fund"), a client account over which it hasdiscretionary trading authority. The Units, which are beneficiallyowned by the Master Fund, were acquired as part of a private placementby Rye Patch (the "Private Placement") of a total of 21,031,666 Unitsfor a subscription price of $0.15 per Unit. Each Unit consists of onecommon share of Rye Patch and one share purchase warrant. Each wholeshare purchase warrant entitles the holder to purchase one common shareof Rye Patch at a subscription price of $0.20 per share until February6, 2011.
Following the completion of the Private Placement, Sun Valleyexercises control and direction over 8,666,667 common shares of RyePatch and 8,666,667 share purchase warrants for and on behalf of theMaster Fund. The 8,666,667 common shares of Rye Patch over which SunValley exercises control and direction for and on behalf of the MasterFund represent approximately 13.29% of the issued and outstandingcommon shares of Rye Patch. If exercised, the 8,666,667 share purchasewarrants over which Sun Valley exercises control and direction for andon behalf of the Master Fund would, together with the 8,666,667 commonshares of Rye Patch over which Sun Valley exercises control anddirection for and on behalf of the Master Fund, represent approximately23.47% of the issued and outstanding common shares of Rye Patch (aftergiving effect to the exercise of such share purchase warrants, but notthe exercise of any other share purchase warrants issued by the Issuer).
The sole shareholders of the Master Fund are Sun Valley GoldInternational, Ltd., of which Sun Valley is the Investment Manager, andSun Valley Gold, L.P., of which Sun Valley is the General Partner. SunValley manages investment accounts for the Master Fund, and hasdiscretionary trading authority of the securities of Rye Patch issuedto the Master Fund.
The Units were acquired for investment purposes. Sun Valley and theMaster Fund may increase or decrease their ownership of securities ofRye Patch depending upon future market conditions.