Business
American Bonanza Raises $7 Million in Property Sale
American Bonanza Raises $7 Million in Property Sale
About this update from Barranco Gold Mining Corp.
[{"type":"text","content":"\nAmerican Bonanza Raises $7 Million in Property Sale\n\n\n Oct. 1, 2010 (Newsfile Corp.) -- Vancouver, British Columbia--(October 1, 2010) - AMERICAN BONANZA GOLD CORP. (TSX: BZA)(\"Bonanza\") announces that it has signed a Letter of Offer (the \"Letter\") with Balmoral Resources Ltd. (TSXV:BAR'H) (OOTC:BALMF) (\"Balmoral\") for Balmoral to purchase four of Bonanza's eastern Canadian exploration properties. Under the terms of the Letter, Bonanza and Balmoral will enter into a Purchase Agreement for Balmoral to purchase Bonanza's rights in the Fenelon, Northway-Noyon, La Martiniere and Northshore properties. In consideration, Balmoral will make a one-time cash payment to Bonanza of Cdn $3.7 million dollars and issue 4.5 million common shares of Balmoral to Bonanza subject to certain resale restrictions. Using the August 31, 2010 Balmoral share price, the total current value of this transaction to Bonanza is over $7 million. Final closure of the Bonanza Agreement is subject to completion of legal due diligence by Balmoral, signing of the formal purchase agreement, completion by Balmoral of a minimum financing of $5.0 million or such amount necessary for Balmoral to meet minimum listing conditions on the TSXV in relation to the transaction, and the approval of the TSXV and TSX. There can be no assurance that the purchase will be completed as proposed or at all. The proceeds of this transaction will be applied to the development of the 100% owned Copperstone gold mine in Arizona. Bonanza has purchased a milling and flotation circuit for Copperstone and continues to make progress through the permitting process begun in late 2009. Brian Kirwin, President and CEO commented: \"We are very pleased with this transaction as it provides further resources for Bonanza to continue the development of the Copperstone gold mine, which is our primary objective in the near term. Balmoral is led by experienced mining professionals and Bonanza's share position in Balmoral provides our shareholders with exposure to further upside of these properties and we look forward to Balmoral's future success.\" About the Copperstone Gold Mine The following highlights from the feasibility study entitled \"NI 43-101 Technical Feasibility Report, Copperstone Project, La Paz County, Arizona\" dated February 2, 2010 (the \"Study\") can be viewed on www.sedar.com and...