VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 18, 2011) -
THIS PRESS RELEASE IS NOT FOR DISTRIBUTION IN THE UNITED STATES OR TO US NEWS AGENCIES
American Bonanza Gold Corp. (TSX:BZA) ("Bonanza" or the "Company") announces that it has received a receipt for its final prospectus filed in respect of the previously announced marketed public offering of units (the "Offering"). The Company entered into an agency agreement with Wellington West Capital Markets Inc. (the "Agent") for the distribution of 44 million units at a price of $0.35 per unit, for gross proceeds of $15.4 million. Each unit will consist of one common share and one half of one warrant. Each whole warrant will entitle the holder to purchase an additional common share for a period of 18 months following closing, at a price of $0.45 per share.
The Company has granted the Agent an over-allotment option, exercisable in whole or in part, to purchase up to an additional 6 million common shares and/or 3 million warrants at any time prior to the date that is 30 days following the closing of the Offering. If the over-allotment option is exercised in full, the gross proceeds of the Offering will be $17.5 million.
The proceeds of the Offering will be used to bring the Copperstone Mine into production, and for general working capital. The Offering is scheduled to close on January 21, 2011.
The securities offered have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any U.S. state securities laws, and may not be offered or sold in the United States or to United States persons absent registration or any applicable exemption from the registration requirement of the U.S. Securities Act and applicable U.S. state securities laws. This release does not constitute an offer to sell, or the solicitation of an offer to buy securities in the United States, nor will there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
Bonanza is working to re-activate mining at the preproduction-stage Copperstone gold mine in Arizona. Bonanza has 130 million shares outstanding and has no debt. For more information please visit Bonanza's website at www.americanbonanza.com.
AMERICAN BONANZA GOLD CORP.
Brian Kirwin, President & Chief Executive Officer