American Bonanza And Gryphon Gold Sign LOI

VANCOUVER, BC - American Bonanza Gold Corp. have signed a Letter of Intent to merge the Company into a wholly-owned subsidiary of Gryphon Gold Corporation through a Plan of Arrangement.
The merger is part of an overall business strategy to increase gold resources through acquisition, exploration and joint ventures in politically stable jurisdictions with long histories of gold mining. The management of Amerian Bonanza believes that this merger will: ¥ Provide a pipeline of projects at various stages of development; ¥ Result in greater market interest through being a larger company; ¥ Result in administrative cost savings; ¥ Bring together two near term production properties: ¥ Gryphon Gold's Borealis property in Nevada has potential for development of: 1. An oxide gold heap leach mine that is already permitted, 2. A near-term, underground high grade gold mine at the Graben deposit or a longer-term option of a large open pit, 3. Significant exploration potential for large multi-million ounce gold deposits.
¥ American Bonanza's Copperstone property in Arizona has potential for:
1. Near-term, oxide, high-grade, underground mine production with a short permitting and construction timelines, 2. Significant expansion of the Copperstone gold resources based on two exciting new gold discoveries with million ounce potential.
Gryphon Gold brings positive exposure to the benefits of gold exploration and resource expansion with nominal cash expenditures through exploration at over 50 properties - primarily through joint venture and leasing agreements. This property portfolio and strategy will allow the combined company to focus on the development of the Borealis and Copperstone properties.
American Bonanza's Joint Venture with Agnico-Eagle on the Northway and Vezza deposits offers potential for a third gold mining project. Other American Bonanza projects in Ontario and Quebec offer significant potential to develop additional resources.
The companies address is Suite 305, 675 West Hastings St., Vancouver, BC V6B 1N2, (604) 688-7523, fax: (604) 681-0122, email: [email protected].