SUN VALLEY, IDAHO--(Marketwired - June 16, 2014) - Sun Valley Gold LLC ("Sun Valley") announced today that on June 12, 2014 it acquired control and direction over 5,000,000 units ("Units") of Sarama Resources Ltd. ("Sarama") on behalf of the 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 for a subscription price of $0.15 per Unit pursuant to a private placement offering by Sarama. Each Unit consists of one common share of Sarama and one half of one common share purchase warrant. Each whole warrant entitles the holder to purchase one common share at a price of $0.20 per share until June 12, 2016.
Following completion of the private placement, Sun Valley exercises control and direction over 12,600,000 common shares and 3,300,000 warrants for and on behalf of the Master Fund. The 12,600,000 common shares over which Sun Valley exercises control and direction for and on behalf of the Master Fund represent approximately 14.82% of the issued and outstanding common shares of Sarama. If exercised, the 3,300,000 warrants over which Sun Valley exercises control and direction for and on behalf of the Master Fund would, together with such shares, represent approximately 18.01% of the issued and outstanding common shares of Sarama (after giving effect to the exercise of such warrants, but not the exercise of any other share purchase warrants issued by Sarama).
The securities of Sarama were acquired for investment purposes. Sun Valley and the Master Fund may increase or decrease their ownership of securities of Sarama depending upon future market conditions.
FOR FURTHER INFORMATION, OR TO OBTAIN A COPY OF THE EARLY WARNING REPORT FILED BY SUN VALLEY UNDER APPLICABLE SECURITIES LEGISLATION, PLEASE SEE THE CONTACT INFORMATION BELOW.
FOR FURTHER INFORMATION PLEASE CONTACT:
Sun Valley Gold LLCLinda J. Kish
Chief Legal Officer
Source: Sun Valley Gold LLC