American Bonanza Gold Corp. announces that it has completed the sale of the Taurus Property to Hawthorne Gold Corp. and on December 31, 2008, received 6.75 million common shares of Hawthorne, representing 12.7% of the outstanding shares of Hawthorne. Bonanza now owns 6,828,947 common shares of Hawthorne representing 12.9% of the issued and outstanding shares of Hawthorne. Total consideration received by Bonanza on the sale of the Taurus property included $3,000,000 in cash and 6,828,947 common shares of Hawthorne.
Brian Kirwin, President & CEO, stated, “I am delighted to have concluded this transaction and very pleased with our investment in Hawthorne as its largest single shareholder. Bonanza will continue to advance the Copperstone gold project toward production while continuing to unlock the value of non-core assets.”
No person has acted jointly or in concert with Bonanza with respect to this acquisition. Bonanza acquired the shares as part of the consideration for the sale of the Taurus Property to Hawthorne. Bonanza does not presently intend to acquire ownership of, or control over, additional securities of Hawthorne. Bonanza may sell shares of Hawthorne from time to time.