Proceeds will finance development of Copperstone gold mine in Arizona
By Devika Patel
Knoxville, Tenn., Dec. 2 - American Bonanza Gold Corp. said it will conduct a private placement of units. There is a C$3.5 million greenshoe for the C$14 million deal.
The company will sell 40 million units of a common share and a half-share warrant at C$0.35 per unit.
Each whole warrant will be exercisable at C$0.45 for 18 months. The strike price reflects a 13.92% premium to the Dec. 1 closing share price of C$0.395.
The deal will be conducted on a best-efforts basis by Wellington West Capital Markets Inc.
Settlement is expected Dec. 23.
Proceeds will be used for development of the Copperstone gold mine in Arizona and for general corporate purposes.
Vancouver, B.C.-based American Bonanza is a gold exploration company.
| Issuer: | American Bonanza Gold Corp.
|
| Issue: | Units of a common share and a half-share warrant
|
| Amount: | C$14 million
|
| Greenshoe: | C$3.5 million
|
| Units: | 40 million
|
| Price: | C$0.35
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | 18 months
|
| Warrant strike price: | C$0.45
|
| Agent: | Wellington West Capital Markets Inc.
|
| Pricing date: | Dec. 2
|
| Settlement date: | Dec. 23
|
| Stock symbol: | Toronto: BZA
|
| Stock price: | C$0.395 at close Dec. 1
|
| Market capitalization: | C$47.41 million
|
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