 Copperstone Air Photo showing Target Zones & Development
| |
| | June 02, 2005
American Bonanza Closes Restructuring of Loan Facility
|
| | AMERICAN BONANZA GOLD CORP. (TSX:BZA) ("Bonanza") is pleased to announce that it has closed the previously announced restructuring of its loan facility with Stonegate Management Limited ("Stonegate").
Pursuant to the terms of the agreement with Stonegate (the "Agreement"), a company operating at arms length to Bonanza, Stonegate agreed to revise the terms of a US$1.0 million loan made by Stonegate to Bonanza's subsidiary, International Taurus Resources Inc. In connection with the restructuring of the loan, Stonegate also agreed to reduce the net profits interest it holds over Bonanza's Fenelon project to 2%, down from 6%. In accordance with the terms of the Agreement, Bonanza has repaid US$400,000 of the principal and US$231,813 in outstanding interest on the loan through the issue of 1,224,551 common shares at a deemed price of $0.65 per common share. Bonanza has the right to repay the balance of the loan at any time, and must repay the loan upon the earlier of its next financing or December 1, 2005. As additional consideration, Bonanza agreed to extend the expiry of warrants to purchase 600,000 common shares of Bonanza at $1.50 per share held by Stonegate to December 1, 2007. All shares issued pursuant to this transaction will be subject to resale restrictions on a quarterly non-cumulative basis over a twelve month period.
AMERICAN BONANZA GOLD CORP
Brian Kirwin, President and Chief Executive Officer
CONTACT INFORMATION
American Bonanza Gold Corp.
Giulio T. Bonifacio
(604) 699-0023
or
American Bonanza Gold Corp.
Wayne Marsden
Toll Free: 1-877-366-4464
http://www.americanbonanza.com |
| |
| | You can view the Next News Releases item: Wed Jun 8, 2005, American Bonanza Reports High Grade Drilling with 32.5 g/t Gold Over 4.2 Metres
You can view the Previous News Releases item: Fri May 13, 2005, American Bonanza Restructures Loan Facility
You can return to the main News Releases page, or press the Back button on your browser.
|
| |
