10 Mil shares to SUN VALLEY GOLD LLC SUN VALLEY GOLD LLC: CONTROL AND DIRECTION OVER COMMON SHARES AND WARRANTS OF AMARC RESOURCES LTD.
Sun Valley Gold LLC has acquired control and direction over 10 million units of Amarc Resources Ltd. on behalf of Sun Valley Gold Master Fund Ltd., 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 approximately 35.7 million units for a subscription price of 45 cents per unit. Each unit consists of one common share of Amarc and one-half of one common share purchase warrant. Each whole warrant entitles the holder to purchase one common share at a price of 60 cents until Sept. 6, 2013.
Following completion of the private placement, Sun Valley exercises control and direction over a total of 14,615,384 common shares and five million warrants for and on behalf of the master fund. The 14,615,384 common shares over which Sun Valley exercises control and direction for and on behalf of the master fund represent approximately 10.55 per cent of the issued and outstanding common shares. If exercised, the five million warrants over which Sun Valley exercises control and direction for and on behalf of the master fund would, together with the 14,615,384 common shares over which Sun Valley exercises control and direction for and on behalf of the master fund, represent approximately 13.66 per cent 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 Amarc).
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 LP, 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 Amarc issued to the master fund.
The securities of Amarc were acquired for investment purposes. Sun Valley and the master fund may increase or decrease their ownership of securities of Amarc depending upon future market conditions.