Ms. Linda Kish of Sun Valley Gold reports
SUN VALLEY GOLD LLC: CONTROL AND DIRECTION OVER SECURITIES OF CHESAPEAKE GOLD CORP.
Sun Valley Gold LLC has acquired control and direction over 1,334,000 common shares of Chesapeake Gold Corp. for and on behalf of Sun Valley Gold Master Fund Ltd., a client account over which it has discretionary trading authority. The common shares were acquired pursuant to a private placement by Chesapeake Gold for a purchase price of $2.25.
Following the acquisition, Sun Valley Gold LLC exercises control and direction over a total of 3,248,738 common shares for and on behalf of the master fund. The 3,248,738 common shares over which Sun Valley Gold LLC exercises control and direction represent approximately 6.34 per cent of the issued and outstanding common shares.
Under applicable Canadian securities laws, Sun Valley Gold Company and Peter Palmedo are considered joint actors of Sun Valley Gold LLC. Sun Valley Gold Company owns 2,312,375 common shares and Mr. Palmedo owns 72,500 common shares. In total, Sun Valley Gold LLC, Sun Valley Gold Company and Mr. Palmedo own or control a total of 5,633,613 common shares, representing 10.99 per cent of the issued and outstanding common shares.
The securities of Chesapeake Gold were acquired for investment purposes. Sun Valley Gold LLC, Sun Valley Gold Company and Mr. Palmedo may increase or decrease their ownership of securities of Chesapeake Gold 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 contact Linda J. Kish, chief legal officer of Sun Valley Gold LLC, by telephone at 208-726-2399 or by fax at 208-726-0842.
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