Suparna Gold Announces Proposed Joint Venture with American Bonanza Exploration

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jun 12, 2013) - Suparna Gold Corp. (TSX VENTURE:SUG) ("Suparna") announces that it has entered into a letter of intent (the "Letter of Intent") with American Bonanza Gold Corp. (BZA.TO) ("AmBon") with respect to a proposed mineral property acquisition and joint venture (the "Transaction") whereby Suparna may acquire from AmBon up to a 60% interest in certain mining claims and property (the "Assets") comprising the Southwest target (the "Southwest Target") at the Copperstone gold mine in La Paz County, Arizona ("Copperstone") currently operated by AmBon.

The Assets

Copperstone is located in western Arizona within the Walker Lane mineral belt where it intersects gold provinces in southern California and western Arizona. AmBon holds a 100% leasehold interest in Copperstone, renewable at AmBon's option every ten years. While almost all exploration at Copperstone has historically been focused on the north end of the property, between 2006 and 2008 AmBon made a new discovery at the Southwest Target (being 50 mineral claim located in the SE of Section 10, W1/2 of Section 11, SW of Section 13, all of Section 14, E1/2 of Section 15, NE of Section 22, N1/2 of Section 23 and NW of Section 24, all in Township 6 North, Range 20 West). During the last year, AmBon has gathered new information about the nature and controls of gold mineralization at Copperstone and now has advanced the understanding of the gold mineralization. The data now in hand for the Southwest Target, along with what has been learned by AmBon from development of Copperstone, points to the possibility that similar mineralization to the Copperstone deposit, could exist in the Southwest Target area.

The Transaction would provide AmBon and Suparna with the necessary corporate focus and resources to continue exploration of the Southwest Target and would allow the exploration to be conducted at the Southwest Target in a timely manner.

Terms of the Transaction

Under the terms of the Letter of Intent, AmBon has granted to Suparna the right to acquire up to a 60% interest in AmBon's leasehold right, title and interest in and to the Assets, as follows:

  1. Suparna will have the right to acquire an initial undivided 12.5% working interest in AmBon's leasehold right, title and interest in and to the Assets by expending, during the first year from the date of the definitive agreement to be entered into between AmBon and Suparna (the "Definitive Agreement"), a minimum of $500,000 in exploration expenditures to be incurred on the Assets;

  2. Suparna will have the right to acquire an additional undivided 12.5% working interest in AmBon's leasehold right, title and interest in and to the Assets by expending, during the second year from the date of the Definitive Agreement, a minimum of $500,000 in exploration expenditures to be incurred on the Assets;

  3. Suparna will have the right to acquire an additional undivided 12.5% working interest in AmBon's leasehold right, title and interest in and to the Assets by expending, during the third year from the date of the Definitive Agreement, a minimum of $500,000 in exploration expenditures to be incurred on the Assets;

  4. Suparna will have the right to acquire an additional undivided 12.5% working interest in AmBon's leasehold right, title and interest in and to the Assets by expending, during the fourth year from the date of the Definitive Agreement, a minimum of $500,000 in exploration expenditures to be incurred on the Assets; and

  5. Suparna will have the right to acquire an additional undivided 10% working interest in AmBon's leasehold right, title and interest in and to the Assets by expending, during the fifth year from the date of the Definitive Agreement, a minimum of $500,000 in exploration expenditures to be incurred on the Assets.