Option Agreement On Taurus Property

VANCOUVER, BC - American Bonanza Gold Corp. reported that it has received a $2 million cash payment from Hawthorne Gold Corporation pursuant to the option agreement dated June 7, 2007 between Bonanza and Cusac Gold Mines Ltd. and the assignment of that agreement to Hawthorne as part of the merger between Hawthorne and Cusac. The option agreement relates to Bonanza's Taurus Property located in the Cassiar Mining district of British Columbia.
The assigned agreement requires Hawthorne to pay $6 million and common shares over two years, consisting of $1 million (paid) by December 22, 2007, $2 million (paid) by June 22, 2008, issue 250,000 common shares by December 22, 2008, $1.5 million by June 22, 2009 and $1.5 million by December 22, 2009. A further $3 million is payable upon completion of a positive feasibility study recommending production, or production, whichever comes first.
The company's address is Suite 305 - 675 West Hastings St., Vancouver, BC V6B 1N2, (604) 688-7523, fax: (604) 681-0122, email: [email protected].