Copperstone Air Photo showing Target Zones & Development
| ||October 01, 2002|
American Bonanza Announces Private Placement
| ||AMERICAN BONANZA GOLD MINING CORP. (the "Corporation") announces it has negotiated, subject to regulatory approval and formal documentation, a brokered private placement with Canaccord Capital Corporation ("Canaccord") totaling 8,166,667 units of the Corporation at a price of $0.15 per unit, for gross proceeds of $1,225,000 with an over allotment option of 25%. Each unit is comprised of one common share and one non-transferable common share purchase warrant with each warrant entitling the holder to acquire one common share at a price of $0.17 for a period of two years. Two senior officers of the Corporation, Mr. Brian Kirwin and Mr. Giulio T. Bonifacio have agreed to subscribe for 1,600,000 units of this offering. The proceeds of the private placement will be applied to general corporate working capital and be used for the further development of the Copperstone project. |
The Corporation is also pleased to announce that it has entered into shares for debt settlement agreements for indebtedness totaling $400,000 by the issuance to eight creditors of 2,000,000 common shares. The debt settlement agreements are subject to final documentation and regulatory approval. Mr. Brian Kirwin and two directors have agreed to participate in the debt settlement for indebtedness totaling $308,000.
On September 19, 2002, 6,012,500 non-transferable share purchase warrants expired unexercised.
About American Bonanza
American Bonanza is engaged in the acquisition, exploration and development of high-grade precious metal properties. American Bonanza'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. American Bonanza'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.
(signed) Brian Kirwin
President and Chief Executive Officer
The TSX Venture Exchange has not reviewed and does not accept responsibility
for the adequacy or accuracy of this news release.
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