 Copperstone Air Photo showing Target Zones & Development
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| | October 06, 2003
American Bonanza Announces Private Placement
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| | AMERICAN BONANZA GOLD MINING CORP. (the "Corporation"), is pleased to announce it has negotiated, subject to regulatory approval and formal documentation, a brokered private placement with Canaccord Capital Corporation ("Canaccord") totalling 21,428,572 units of the Corporation at a price of $0.28 per unit, for gross proceeds of $6,000,000 with an over allotment option of 50%. Each unit is comprised of one common share and one half of a transferable common share purchase warrant with each full warrant entitling the holder to acquire one common share at a price of $0.35 for a period of three years.
As previously announced, the Corporation and Canaccord intend to carry out a public offering to raise up to $2,000,000 (Minimum $1,500,000) through the sale of units by way of a Short Form Offering Document ("SFOD") to purchasers in British Columbia and Alberta and such other jurisdictions as the offering may legally be sold. The Corporation has revised the unit price and the exercise price for the common share purchase warrants forming part of the units offered under the SFOD. Under the revised SFOD, the Corporation, through its Agent, Canaccord Capital Corporation, will offer up to 7,142,858 units at a price of $0.28 per unit. Each unit will be comprised of one common share and one half of a non-transferable warrant. Each whole warrant will entitle the holder to acquire one additional common share for a period of two years at a price of $0.35.
The proceeds of the private placement and offering will be used primarily for the development of the Copperstone Project in Arizona.
About American Bonanza
American Bonanza is engaged in the acquisition, exploration and development of high-grade gold properties. The Corporation's innovative metallogenic techniques developed at considerable expense represent state-of-the-art tools for modern exploration in the Great Basin of the American Southwest. The Corporation's metallogenic techniques have involved technical pioneering in terms of geological data analysis, hardware and software applications and will be the catalyst for future corporate growth.
Additional information about American Bonanza can be obtained at www.americanbonanza.com.
AMERICAN BONANZA GOLD MINING CORP.
Brian Kirwin, President and Chief Executive Officer
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CONTACT INFORMATION
FOR FURTHER INFORMATION PLEASE CONTACT:
American Bonanza Gold Mining Corp.
Brian Kirwin
President and Chief Executive Officer
(775) 824-0707
or
American Bonanza Gold Mining Corp.
Giulio T. Bonifacio
Executive Vice President and Chief Financial Officer
(604) 688-7523
Website: www.americanbonanza.com
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. |
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