VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 15, 2012) -American Bonanza Gold Corp. (TSX:BZA)(OTCQX:ABGFF)(PINKSHEETS:ABGFF) ("Bonanza" or "Company") is pleased to announce that it has completed a secured gold prepayment facility with Resource Income Fund, L.P. ("RIF") whereby Bonanza will sell 3,936 ounces of gold for delivery during 2012, for gross proceeds of US$6,000,000 (the "Facility"). The gold may be delivered to RIF on an earlier schedule with no penalty.
The proceeds from the Facility will be used for funding working capital, and Bonanza will invest in the further optimization of the Copperstone gold mine as it ramps up to full production, with a target throughput of 450 tons per day.
The Facility is a forward contract structured to deliver 3,936 ounces of gold over a 32 week term in the amount of 123 ounces per week starting on May 7, 2012 and ending on December 10, 2012. The 3,936 ounces of gold that have been committed under this gold facility represent approximately 1.5% of the proven mineral reserves at the Copperstone gold mine.
In connection with the Facility, Bonanza will grant to RIF 4,000 ounces of gold call options, expiring on April 15, 2013 with a strike price of US$2,025 per ounce. An upfront fee of 3% was paid to RIF upon closing of the Facility.
Bonanza is operating the newly constructed Copperstone gold mine in Arizona. For more information please visit Bonanza's website at www.americanbonanza.com.