SUN VALLEY, IDAHO--(Marketwire -03/02/12)- Peter Palmedo, Sun Valley Gold Company and Sun Valley Gold LLC announce that, effective in February 2008, the equity securities of Chesapeake beneficially owned by them, or over which they have control or direction, no longer constituted 10% or more of the outstanding equity securities of Chesapeake Gold Corp. ("Chesapeake") of any class. This change occurred as a result of the automatic conversion of all issued and outstanding Class A, Series 1 Restricted Voting Shares of Chesapeake, an issuer action, without any action being taken by Mr. Palmedo, Sun Valley Gold Company or Sun Valley Gold LLC.
In February 2012, 476,975 common share purchase warrants ("Chesapeake Warrants") to purchase 476,975 Chesapeake Common Shares which were beneficially owned by Mr. Palmedo and Sun Valley Gold Company and 260,349 Chesapeake Warrants over which Sun Valley Gold LLC exercised control or direction, were exercised. In addition, client accounts over which Sun Valley Gold LLC has discretionary trading authority acquired an additional 37,100 Chesapeake Common Shares. Following these transactions, Mr. Palmedo and Sun Valley Gold Company beneficially own, and Sun Valley Gold LCC exercises control or direction over, in the aggregate, 3,723,713 Chesapeake Common Shares, representing approximately 8.42% of the Chesapeake Common Shares issued and outstanding as at February 28, 2012 and stock options entitling the holder, following vesting, to acquire a total of 225,000 Chesapeake Common Shares. Such securities represent less than 10% of the outstanding voting or equity securities of Chesapeake.
Mr. Palmedo, Sun Valley Gold Company and Sun Valley Gold LLC may increase or decrease direct or indirect beneficial ownership of, or control or direction over, securities of Chesapeake depending upon future market conditions.
For further information, or to obtain a copy of the early warning report filed pursuant to applicable securities legislation in respect of this matter, please contact:
Mr. Peter F. Palmedo,
President, Sun Valley Gold Company
Managing Member, Sun Valley Gold LLC
c/o Sun Valley Gold LLC
620 Sun Valley Road
Sun Valley, ID 83353
Tel: (208) 726-2327
Fax: (208) 726-2469
Sun Valley Gold LLC
Mr. Peter F. Palmedo
(208) 726-2469 (FAX)