Document:

American Bonanza Gold Corp.: Exhibit 4.9 - Filed by newsfilecorp.com

GENERAL SECURITY AGREEMENT

	1. 	
      SECURITY INTEREST

(a)              For
value received, Bonanza Explorations Inc. (the "Debtor"), hereby grants to
Resource Income Fund, L.P. ("RIF"), a security interest (the "Security
Interest") in the undertaking of Debtor and in all of Debtor's present and after
acquired personal property, except for the Mining Lease (as defined in the
Secured Promissory Note and Guaranty of Debtor to RIF of February 14, 2012,
herewith the “Note”), including all Goods (including all parts, accessories,
attachments, special tools, additions and accessions thereto), Chattel Paper,
Documents of Title (whether negotiable or not), Instruments, Intangibles, Money
and Securities and all other Investment Property now owned or hereafter owned or
acquired by or on behalf of Debtor (including such as may be returned to or
repossessed by Debtor) and in all proceeds and renewals thereof, accretions
thereto and substitutions therefore (hereinafter collectively called
"Collateral"), and including, to the extent same do not comprise the Mining
Lease all of the following now owned or hereafter owned or acquired by or on
behalf of Debtor: 

	 	(i) 	
      all inventory of whatever kind and wherever
    situate;

	 	 	 
	 	(ii) 	
      all equipment (other than Inventory) of whatever kind and
      wherever situate, including, without limitation, all machinery, tools,
      apparatus, plant, furniture, fixtures and vehicles of whatsoever nature or
      kind;

	 	 	 
	 	(iii) 	
      all Accounts and book debts and generally all debts,
      dues, claims, choses in action and demands of every nature and kind
      howsoever arising or secured including letters of credit and advices of
      credit, which are now due, owing or accruing or growing due to or owned by
      or which may hereafter become due, owing or accruing or growing due to or
      owned by Debtor ("Debts");

	 	 	 
	 	(iv) 	
      all lists, records and files relating to Debtor's
      customers, clients and patients;

	 	 	 
	 	(v) 	
      all deeds, documents, writings, papers, books of account
      and other books relating to or being records of Debts, Chattel Paper or
      Documents of Title or by which such are or may hereafter be secured,
      evidenced, acknowledged or made payable;

	 	 	 
	 	(vi) 	
      all contractual rights and insurance claims;
and

	 	 	 
	 	(vii) 	
      all patents, industrial designs, trade-marks, trade
      secrets and know- how including without limitation environmental
      technology and biotechnology, confidential information, trade-names,
      goodwill, copyrights, personality rights, plant breeders' rights,
      integrated circuit topographies, software and all other forms of
      intellectual and industrial property, and any registrations and
      applications for registration of any of the foregoing (collectively
      "Intellectual Property"); and

	 	 	 
	 	(viii) 	
      any and all future material contracts including any
      mining exploration or development contract, refining contracts and all
      proceeds related thereto refining and milling contracts, and any renewals
      and amendments thereof.

(b)              The
Security Interest granted hereby shall not extend or apply to and Collateral
shall not include the last day of the term of any lease or agreement therefor
but upon the enforcement of the Security Interest, Debtor shall stand possessed
of such last day in trust to assign the same to any person acquiring such term.

(c)              The
terms "Goods", "Chattel Paper", "Document of Title", "Instrument", "Intangible",
"Security", "Investment Property", "proceed", "Inventory", "accession", "Money",
"Account", "financing statement" and "financing change statement" whenever used
herein shall be interpreted pursuant to their respective meanings when used in
“UCC”, the Uniform Commercial Code, as enacted in the State of Nevada, as
amended from time to time, which Code, including amendments thereto and any Code
substituted therefor and amendments thereto is herein referred to as the "UCC".
Provided always that the term "Goods" when used herein shall not include
"consumer goods" of Debtor as that term is defined in the global “UCC”, the term
"Inventory" when used herein shall include livestock and the young thereof after
conception and crops that become such within one year of execution of this
Security Agreement. Any reference herein to "Collateral" shall, unless the
context otherwise requires, be deemed a reference to "Collateral or any part
thereof". 

	2. 	
      INDEBTEDNESS SECURED

The
Security Interest granted hereby secures payment and performance of any and all
obligations, indebtedness and liability of Debtor to RIF (including interest
thereon) present or future, direct or indirect, absolute or contingent, matured
or not, extended or renewed, wheresoever and howsoever incurred and any ultimate
unpaid balance thereof and whether the same is from time to time reduced and
thereafter increased or entirely extinguished and thereafter incurred again and
whether Debtor be bound alone or with another or others and whether as principal
or surety (hereinafter collectively called the "Indebtedness"). If the Security
Interest in the Collateral is not sufficient, in the event of default, to
satisfy all Indebtedness of the Debtor, the Debtor acknowledges and agrees that
Debtor shall continue to be liable for any Indebtedness remaining outstanding
and RIF shall be entitled to pursue full payment thereof. 

	3. 	
      REPRESENTATIONS AND WARRANTIES OF
  DEBTOR

Debtor
represents and warrants and so long as this Security Agreement remains in effect
shall be deemed to continuously represent and warrant that: 

	 	(a) 	
      the Collateral is genuine and owned by Debtor free of all
      security interests, mortgages, liens, claims, charges, licenses, leases,
      infringements by third parties, encumbrances or other adverse claims or
      interests (hereinafter collectively called "Encumbrances"), save for the
      Security Interest and those Encumbrances shown on Schedule "A" or hereafter approved in writing by RIF,
      prior to their creation or assumption;

Page 2 of 14 

	 	(b) 	
      all Intellectual Property applications and registrations
      are valid and in good standing and Debtor is the owner of the applications
      and registrations;

	 	 	 
	 	(c) 	
      each Debt, Chattel Paper and Instrument constituting
      Collateral is enforceable in accordance with its terms against the party
      obligated to pay the same (the "Account Debtor"), and the amount
      represented by Debtor to RIF from time to time as owing by each Account
      Debtor or by all Account Debtors will be the correct amount actually and
      unconditionally owing by such Account Debtor or Account Debtors, except
      for normal cash discounts where applicable, and no Account Debtor will
      have any defence, set off, claim or counterclaim against Debtor which can
      be asserted against RIF, whether in any proceeding to enforce Collateral
      or otherwise;

	 	 	 
	 	(d) 	
      the locations specified in Schedule "B" as to business
      operations and records are accurate and complete and with respect to Goods
      (including Inventory) constituting Collateral, the locations specified in
      Schedule "B" are accurate and complete save for Goods in transit to such
      locations and Inventory on lease or consignment; and all fixtures or Goods
      about to become fixtures and all crops and all oil, gas or other minerals
      to be extracted and all timber to be cut which forms part of the
      Collateral will be situate at one of such locations; and

	 	 	 
	 	(e) 	
      the execution, delivery and performance of the
      obligations under this Security Agreement and the creation of any security
      interest in or assignment hereunder of Debtor's rights in the Collateral
      to RIF will not result in a breach of any agreement to which Debtor is a
      party.

	4. 	
      COVENANTS OF THE DEBTOR

So long
as this Security Agreement remains in effect Debtor covenants and agrees: 

(a)              to
defend the Collateral against the claims and demands of all other parties
claiming the same or an interest therein; to diligently initiate and prosecute
legal action against all infringers of Debtor's rights in Intellectual Property;
to take all reasonable action to keep the Collateral free from all Encumbrances,
except for the Security Interest, licenses which are compulsory under federal or
provincial legislation and those shown on Schedule "A" or hereafter approved in
writing by RIF, prior to their creation or assumption, and not to sell,
exchange, transfer, assign, lease, license or otherwise dispose of Collateral or
any interest therein without the prior written consent of RIF; provided always
that, until default, Debtor may, in the ordinary course of Debtor's business,
sell or lease Inventory and, subject to Clause 7 hereof, use Money available to
Debtor;

(b)              to
notify RIF promptly of: 

	 	(i) 	
      any change in the information contained herein or in the
      Schedules hereto relating to Debtor, Debtor's business or
    Collateral,

Page 3 of 14 

	 	(ii) 	
      the details of any significant acquisition of
      Collateral,

	 	 	 
	 	(iii) 	
      the details of any claims or litigation affecting Debtor
      or Collateral,

	 	 	 
	 	(iv) 	
      any loss or damage to Collateral,

	 	 	 
	 	(v) 	
      any default by any Account Debtor in payment or other
      performance of its obligations with respect to Collateral, and

	 	 	 
	 	(vi) 	
      the return to or repossession by Debtor of
    Collateral;

(c)              to
keep Collateral in good order, condition and repair and not to use Collateral in
violation of the provisions of this Security Agreement or any other agreement
relating to Collateral or any policy insuring Collateral or any applicable
statute, law, by-law, rule, regulation or ordinance; to keep all agreements,
registrations and applications relating to Intellectual Property and
intellectual property used by Debtor in its business in good standing and to
renew all agreements and registrations as may be necessary or desirable to
protect Intellectual Property, unless otherwise agreed in writing by RIF; to
apply to register all existing and future copyrights, trade-marks, patents,
integrated circuit topographies and industrial designs whenever it is
commercially reasonable to do so; 

(d)              to
do, execute, acknowledge and deliver such financing statements, financing change
statements and further assignments, transfers, documents, acts, matters and
things (including further schedules hereto) as may be reasonably requested by RIF of or with respect to Collateral in order to give effect to these presents
and to pay all costs for searches and filings in connection therewith; 

(e)              to
pay all taxes, rates, levies, assessments and other charges of every nature
which may be lawfully levied, assessed or imposed against or in respect of
Debtor or Collateral as and when the same become due and payable;

(f)              to
insure collateral in such amounts and against such risks as would customarily be
insured by a prudent owner of similar Collateral and in such additional amounts
and against such additional risks as RIF may from time to time direct, with loss
payable to RIF and Debtor, as insureds, as their respective interests may
appear, and to pay all premiums therefor and deliver copies of policies and
evidence of renewal to RIF on request; 

(g)              to
prevent Collateral, save Inventory sold or leased as permitted hereby, from
being or becoming an accession to other property not covered by this Security
Agreement; 

(h)              to
carry on and conduct the business of Debtor in a proper and efficient manner and
so as to protect and preserve Collateral and to keep, in accordance with
generally accepted accounting principles, consistently applied, proper books of
account for Debtor's business as well as accurate and complete records
concerning Collateral, and mark any and all such records and Collateral at RIF's
request so as to indicate the Security Interest; 

(i)              to
deliver to RIF from time to time promptly upon request:

Page 4 of 14 

	 	(i) 	
      any Documents of Title, Instruments, Securities and
      Chattel Paper constituting, representing or relating to
  Collateral,

	 	 	 
	 	(ii) 	
      all books of account and all records, ledgers, reports,
      correspondence, schedules, documents, statements, lists and other writings
      relating to Collateral for the purpose of inspecting, auditing or copying
      the same,

	 	 	 
	 	(iii) 	
      all financial statements prepared by or for Debtor
      regarding Debtor's business,

	 	 	 
	 	(iv) 	
      all policies and certificates of insurance relating to
      Collateral, and

	 	 	 
	 	(v) 	
      such information concerning Collateral, the Debtor and
      Debtor's business and affairs as RIF may reasonably
  request.

	5. 	
      USE AND VERIFICATION OF
  COLLATERAL

Subject
to compliance with Debtor's covenants contained herein and Clause 7 hereof,
Debtor may, until the expiry of any cure period of a default, possess, operate,
collect, use and enjoy and deal with Collateral in the ordinary course of
Debtor's business in any manner not inconsistent with the provisions hereof;
provided always that RIF shall have the right at any time and from time to time
to verify the existence and state of the Collateral in any manner RIF may
consider appropriate and Debtor agrees to furnish all assistance and information
and to perform all such acts as RIF may reasonably request in connection
therewith and for such purpose to grant to RIF or its agents access to all
places where Collateral may be located and to all premises occupied by Debtor.

	6. 	
      SECURITIES, INVESTMENT
PROPERTY

If
Collateral at any time includes Securities, Debtor authorizes RIF, following an
Event of Default, to transfer the same or any part thereof into its own name or
that of its nominee(s) so that RIF or its nominee(s) may appear of record as the
sole owner thereof. 

Where
any Investment Property is held in or credited to an account that has been
established with a securities intermediary, RIF may, at any time after default,
give a notice of exclusive control to any such securities intermediary with
respect to such Investment Property. 

	7. 	
      COLLECTION OF DEBTS

After
default under this Security Agreement, RIF may notify all or any Account Debtors
of the Security Interest and may also direct such Account Debtors to make all
payments on Collateral to RIF. Debtor acknowledges that any payments on or other
proceeds of Collateral received by Debtor from Account Debtors, whether before
or after notification of this Security Interest to Account Debtors and whether
before or after default under this 

Security
Agreement, shall be received and held by Debtor in trust for RIF and shall be
turned over to RIF upon request. 

Page 5 of 14 

	8. 	
      INCOME FROM AND INTEREST ON
  COLLATERAL

(a)              Until default, Debtor reserves the right to receive any Money constituting
income from or interest on Collateral and if RIF receives any such Money prior
to default, RIF shall either credit the same against the Indebtedness or pay the
same promptly to Debtor. 

(b)
              After default, Debtor will not request or receive any Money constituting income
from or interest on Collateral and if Debtor receives any such Money without any
request by it, Debtor will pay the same promptly to RIF. 

	9. 	
      INCREASES, PROFITS, PAYMENTS OR
    DISTRIBUTIONS

(a)              Whether or not default has occurred, Debtor authorizes RIF: 

	 	(i) 	
      to receive any increase in or profits on Collateral
      (other than Money) and to hold the same as part of Collateral. Money so
      received shall be treated as income for the purposes of Clause 8 hereof
      and dealt with accordingly;

	 	 	 
	 	(ii) 	
      to receive any payment or distribution upon redemption or
      retirement or upon dissolution and liquidation of the issuer of
      Collateral; to surrender such Collateral in exchange therefor and to hold
      any such payment or distribution as part of
Collateral.

(b)              If
Debtor receives any such increase or profits (other than Money) or payments or
distributions, Debtor will deliver the same promptly to RIF to be held by RIF as
herein provided. 

	10. 	
      DISPOSITION OF MONEY

Subject
to any applicable requirements of the UCC and the terms of this Agreement, all
Money collected or received by RIF pursuant to or in exercise of any right it
possesses with respect to Collateral shall be applied on account of Indebtedness
first, to retire any other Indebtedness of the Debtor to RIF, second, to pay the
expenses of RIF in enforcing its interests hereunder, third, to pay down the
Note in order of the payments due thereunder, or released to Debtor, all without
prejudice to the liability of Debtor or the rights of RIF hereunder, and any
surplus shall be accounted for as required by law. 

	11. 	
      EVENTS OF DEFAULT

The
happening of any Event of Default (as defined in the promissory note made on
February 14, 2012 between Debtor and RIF, as the same may be amended, modified,
supplemented or restated from time to time) shall constitute a default hereunder
and is herein referenced to as “default”. All cure periods applicable in the
Note shall apply herein. 

	13. 	
      REMEDIES

(a)              RIF
may appoint or reappoint by instrument in writing, any person or persons,
whether an officer or officers or an employee or employees of RIF or not, to be
a receiver or receivers (hereinafter called a "Receiver", which term when
used herein shall include a receiver and manager) of Collateral (including any
interest, income or profits therefrom) and may remove any Receiver so appointed
and appoint another in his/her stead. Any such Receiver shall, so far as
concerns responsibility for his/her acts, be deemed the agent of Debtor and not
RIF, and RIF shall not be in any way responsible for any misconduct, negligence
or non-feasance on the part of any such Receiver, his/her servants, agents or
employees. Subject to the provisions of the instrument appointing him/her, any
such Receiver shall have power to take possession of Collateral, to preserve
Collateral or its value, to carry on or concur in carrying on all or any part of
the business of Debtor and to sell, lease, license or otherwise dispose of or
concur in selling, leasing, licensing or otherwise disposing of Collateral. To
facilitate the foregoing powers, any such Receiver may, to the exclusion of all
others, including Debtor, enter upon, use and occupy all premises owned or
occupied by Debtor wherein Collateral may be situate, maintain Collateral upon
such premises, borrow money on a secured or unsecured basis and use Collateral
directly in carrying on Debtor's business or as security for loans or advances
to enable the Receiver to carry on Debtor's business or otherwise, as such
Receiver shall, in its discretion, determine. Except as may be otherwise
directed by RIF, all Money received from time to time by such Receiver in
carrying out his/her appointment shall be received in trust for and paid over to
RIF. Every such Receiver may, in the discretion of RIF, be vested with all or
any of the rights and powers of RIF. 

Page 6 of 14 

(b)              RIF
may, either directly or through its agents or nominees, exercise any or all of
the powers and rights given to a Receiver by virtue of the foregoing sub-clause
(a). 

(c)              RIF
may take possession of, collect, demand, sue on, enforce, recover and receive
Collateral and give valid and binding receipts and discharges therefor and in
respect thereof and, upon default, RIF may sell, license, lease or otherwise
dispose of Collateral in such manner, at such time or times and place or places,
for such consideration and upon such terms and conditions as to RIF may seem
reasonable. 

(d)              In
addition to those rights granted herein and in any other agreement now or
hereafter in effect between Debtor and RIF and in addition to any other rights
RIF may have at law or in equity, RIF shall have, both before and after default,
all rights and remedies of a secured party under the UCC. Provided always, that
RIF shall not be liable or accountable for any failure to exercise its remedies,
take possession of, collect, enforce, realize, sell, lease, license or otherwise
dispose of Collateral or to institute any proceedings for such purposes.
Furthermore, RIF shall have no obligation to take any steps to preserve rights
against prior parties to any Instrument or Chattel Paper whether Collateral or
proceeds and whether or not in RIF's possession and shall not be liable or
accountable for failure to do so. 

(e)              Debtor acknowledges that RIF or any Receiver appointed by it may take possession
of Collateral wherever it may be located and by any method permitted by law and
Debtor agrees upon request from RIF or any such Receiver to assemble and deliver
possession of Collateral at such place or places as directed.

(f)              Debtor agrees to be liable for and to pay all costs, charges and expenses
reasonably incurred by RIF or any Receiver appointed by it, whether directly or
for services rendered (including reasonable solicitors and auditors costs and
other legal expenses and Receiver remuneration), in operating Debtor's accounts,
in preparing or enforcing this Security Agreement, taking and maintaining custody of, preserving,
repairing, processing, preparing for disposition and disposing of Collateral and
in enforcing or collecting Indebtedness and all such costs, charges and
expenses, together with any amounts owing as a result of any borrowing by RIF or
any Receiver appointed by it, as permitted hereby, shall be a first charge on
the proceeds of realization, collection or disposition of Collateral and shall
be secured hereby. 

Page 7 of 14 

(g)              RIF
will give Debtor such notice, if any, of the date, time and place of any public
sale or of the date after which any private disposition of Collateral is to be
made as may be required by the UCC

(h)              Upon
default and receiving written demand from RIF, Debtor shall take such further
action as may be necessary to evidence and effect an assignment or licensing of
Intellectual Property to whomever RIF directs, including to RIF. Debtor appoints
any officer or director or branch manager of RIF upon default to be its attorney
in accordance with applicable legislation with full power of substitution and to
do on Debtor's behalf anything that is required to assign, license or transfer,
and to record any assignment, licence or transfer of the Collateral. This power
of attorney, which is coupled with an interest, is irrevocable until the release
or discharge of the Security Interest. 

	14. 	
      MISCELLANEOUS

(a)              Debtor hereby authorizes RIF to file such financing statements, financing change
statements and other documents and do such acts, matters and things (including
completing and adding schedules hereto identifying Collateral or any permitted
Encumbrances affecting Collateral or identifying the locations at which Debtor's
business is carried on and Collateral and records relating thereto are situate)
as RIF may deem appropriate to perfect on an ongoing basis and continue the
Security Interest, to protect and preserve Collateral and to realize upon the
Security Interest and Debtor hereby irrevocably constitutes and appoints RIF the
true and lawful attorney of Debtor, with full power of substitution, to do any
of the foregoing in the name of Debtor whenever and wherever it may be deemed
necessary or expedient. 

(b)              Without limiting any other right of RIF, whenever Indebtedness is immediately
due and payable or RIF has the right to declare Indebtedness to be immediately
due and payable (whether or not it has so declared), RIF may, in its sole
discretion, set off against Indebtedness any and all amounts then owed to Debtor
by RIF in any capacity, whether or not due, and RIF shall be deemed to have
exercised such right to set off immediately at the time of making its decision
to do so even though any charge therefor is made or entered on RIF's records
subsequent thereto. 

(c)              Upon
Debtor's failure to perform any of its duties hereunder, RIF may, but shall not
be obligated to, perform any or all of such duties, and Debtor shall pay to RIF,
forthwith upon written demand therefor, an amount equal to the expense incurred
by RIF in so doing plus interest thereon from the date such expense is incurred
until it is paid at the rate of 15% per annum. 

(d)              RIF
may grant extensions of time and other indulgences, take and give up security,
accept compositions, compound, compromise, settle, grant releases and discharges
and otherwise deal with Debtor, debtors of Debtor, sureties and
others and with Collateral and other security as RIF may see fit without
prejudice to the liability of Debtor or RIF's right to hold and realize the
Security Interest. Furthermore, RIF may demand, collect and sue on Collateral in
either Debtor's or RIF's name, at RIF's option, and may endorse Debtor's name on
any and all cheques, commercial paper, and any other Instruments pertaining to
or constituting Collateral. 

Page 8 of 14 

(e)              No
delay or omission by RIF in exercising any right or remedy hereunder or with
respect to any Indebtedness shall operate as a waiver thereof or of any other
right or remedy, and no single or partial exercise thereof shall preclude any
other or further exercise thereof or the exercise of any other right or remedy.
Furthermore, RIF may remedy any default by Debtor hereunder or with respect to
any Indebtedness in any reasonable manner without waiving the default remedied
and without waiving any other prior or subsequent default by Debtor. All rights
and remedies of RIF granted or recognized herein are cumulative and may be
exercised at any time and from time to time independently or in combination.

(f)              Debtor waives protest of any Instrument constituting Collateral at any time held
by RIF on which Debtor is in any way liable and, subject to Clause 13(g) hereof,
notice of any other action taken by RIF. 

(g)              This
Security Agreement shall ensure to the benefit of and be binding upon the
parties hereto and their respective heirs, executors, administrators, successors
and assigns. (h) Subject to compliance with applicable securities law, RIF may
provide any financial and other information it has about Debtor, the Security
Interest and the Collateral to any one acquiring or who may acquire an interest
in the Security Interest or the Collateral from the RIF or anyone acting on
behalf of the RIF. 

(i)              Save
for any schedules which may be added hereto pursuant to the provisions hereof,
no modification, variation or amendment of any provision of this Security
Agreement shall be made except by a written agreement, executed by the parties
hereto and no waiver of any provision hereof shall be effective unless in
writing. 

(j)              This
Security Agreement and the security afforded hereby is in addition to and not in
substitution for any other security now or hereafter held by RIF and is intended
to be a continuing Security Agreement and shall remain in full force and effect
until RIF shall actually receive written notice of its discontinuance; and,
notwithstanding such notice, shall remain in full force and effect thereafter
until all Indebtedness contracted for or created before the receipt of such
notice by RIF, and any extensions or renewals thereof (whether made before or
after receipt of such notice) together with interest accruing thereon after such
notice, shall be paid in full. 

(k)              The
headings used in this Security Agreement are for convenience only and are not be
considered a part of this Security Agreement and do not in any way limit or
amplify the terms and provisions of this Security Agreement.

(l)              When
the context so requires, the singular number shall be read as if the plural were
expressed and the provisions hereof shall be read with all grammatical changes
necessary dependent upon the person referred to being a male, female, firm or
corporation.

Page 9 of 14 

(m)              In
the event any provisions of this Security Agreement, as amended from time to
time, shall be deemed invalid or void, in whole or in part, by any Court of
competent jurisdiction, the remaining terms and provisions of this Security
Agreement shall remain in full force and effect. 

(n)              Nothing herein contained shall in any way obligate RIF to grant, continue,
renew, extend time for payment of or accept anything which constitutes or would
constitute Indebtedness. 

(o)              The
Security Interest created hereby is intended to attach when this Security
Agreement is signed by Debtor and delivered to RIF. 

(p)              Debtor acknowledges and agrees that in the event it amalgamates with any other
company or companies it is the intention of the parties hereto that the term
"Debtor" when used herein shall apply to each of the amalgamating companies and
to the amalgamated company, such that the Security Interest granted hereby

	 	(i) 	
      shall extend to "Collateral" (as that term is herein
      defined) owned by each of the amalgamating companies and the amalgamated
      company at the time of amalgamation and to any "Collateral" thereafter
      owned or acquired by the amalgamated company, and

	 	 	 
	 	(ii) 	
      shall secure the "Indebtedness" (as that term is herein
      defined) of each of the amalgamating companies and the amalgamated company
      to RIF at the time of amalgamation and any "Indebtedness" of the
      amalgamated company to RIF thereafter arising. The Security Interest shall
      attach to "Collateral" owned by each company amalgamating with Debtor, and
      by the amalgamated company, at the time of the amalgamation, and shall
      attach to any "Collateral" thereafter owned or acquired by the amalgamated
      company when such becomes owned or is acquired.

(q)              This
Security Agreement and the transactions evidenced hereby shall be governed by
and construed in accordance with the laws of the Province of Ontario and the
laws of Canada applicable therein. 

	15. 	
      COPY OF AGREEMENT

(a)              Debtor hereby acknowledges receipt of a copy of this Security Agreement. 

Page 10 of 14American Bonanza Gold Corp.: Exhibit 4.10 - Filed by newsfilecorp.com

 

	
    	AURAMET TRADING, LLC 
Suite 645, 2 Executive
      Drive 
Fort Lee, NJ 07024 
Phone: 201-905-5000 
Fax: 201-905-5001
    

MASTER PURCHASE CONTRACT 
& 
BILL OF SALE 

	February 14, 2012 
	  
	Mr. Brian Kirwin 
	Chief Executive Officer 
	  
	Mr. Todd Fayram 
	Chief Operating Officer 
	  
	American Bonanza Gold Corp. 
	200 Granville Street – Suite 1238 
	Vancouver, BC 
	Canada V6C 1S4 

	
      RE: 
	
      PRECIOUS METALS (“PM”) PURCHASE CONTRACT AND BILL
      OF SALE (THE “AGREEMENT”) BETWEEN AURAMET TRADING, LLC, AND
      AMERICAN BONANZA GOLD CORP. TOGETHER WITH ITS OPERATING SUBSIDIARY
      BONANZA EXPLORATION INC 

Dear Mr. Kirwin and Mr. Fayram: 

AURAMET TRADING, LLC (“Buyer”) hereby agrees to purchase and
AMERICAN BONANZA GOLD CORP. together with its operating subsidiary BONANZA
EXPLORATION INC. (jointly and severally, “Seller”) hereby agrees to sell,
transfer, assign, set over and convey to Buyer the PM described below on the
following terms and conditions: 

1.0 Material 

Subject to its obligations to Resource
Income Fund, L.P, 100% of the total gold production (the “Material”) produced
from the Copperstone Mine located in Arizona. The Copperstone Mine is located in
western Arizona, approximately 10 road miles northwest of the town of Quartzsite
in La Paz Country Arizona. 

2.0 Pricing Mechanisms 

Buyer will provide the Seller with a flexible and comprehensive
pricing and payment facility pursuant to the following terms and conditions:

2.1 Spot Pricing 

Seller may price the Material based
upon the estimated gold content contained in dore or concentrate, as per
Seller’s assays, on Buyer’s spot market bid price during New York trading hours
(8:30 a.m. to 4:30 p.m. Eastern Time) on any business day (defined as “any
business day that the New York COMEX is open for business”). The spot value date
is generally 2 business days from the date of pricing.

Unless priced on a spot or other basis
as outlined herein, Buyer will work Seller’s firm orders 24 hours a day on a
good until cancelled basis.

2.2 Pre-Pricing / Forward
Pricing 

Seller may price the Material for
periods up to three months [or longer if a Price Protection Program] prior to
outturn of refined PM at the Refinery (or such longer periods as the parties may
mutually agree) based on the spot price as outlined above and adjusted to
reflect the then current forward rates in effect at the time of pricing. The
value date is the date (within the maximum tenor of three months) of the
contract maturity.

2.3 Option Pricing

The Seller may, at its discretion, be
either the seller or the buyer of European Style Gold Options (for Loco London
delivery). Any option premium due will be payable on the premium value date (the
option premium value date is generally 2 business days from the date of buying
or selling the option).

If an option is exercised, the delivery
and value date shall be 2 business days from the exercise date (unless otherwise
agreed by Buyer and Seller).

Buyer’s standard terms and conditions
shall apply to any transaction outlined above. The standard terms and conditions
are outlined in the Master Trading Agreement which will be executed
separately.

2.4 Payment 

In all cases outlined above, the
payment shall be as stated on the individual contract value date by wire
transfer: 

2.4.1 If to Seller 

Seller’s designated account shall be
provided in writing prior to the first payment date herein. Seller will advise
Buyer by written notice of any modification to payment instruction and/or change
in payment designated account.

2 

2.4.2 If to Buyer 

Buyer’s designated account shall be
provided in writing prior to the first payment date herein. Buyer will advise
Seller by written notice of any modification to payment instruction and/or
change in payment designated account. 

3.0 Purchase and Settlement Mechanisms – Spot;
Forward; and In-Process Facility 

Seller may sell the Material on the basis of any of the
following three methods: 

	 	A. 	
      on a Spot Basis, i.e. payment for and delivery of the
      Material generally made contemporaneously two (2) business days after
      pricing as set forth in Section 2.1.

	 	 	 
	 	B. 	
      on a Forward Basis, i.e. payment for and delivery of the
      Material generally made contemporaneously on a date set up to three months
      following pricing in accordance with Section 2.2 above; or

	 	 	 
	 	C. 	
      on an In Process Basis, i.e. the Material is priced and
      paid for while the Material is in process at the [refiner to be
      determined] refinery (“Refinery”), or some other location deemed
      reasonably acceptable to Buyer.

	 	 	 
	 	D. 	
      Mechanics

	 	1. 	
      Form of Material

	 	 	 
	 		
      Dore or concentrate containing unrefined PM (the
      “Unrefined PM”). The Buyer shall be satisfied through final delivery of
      refined PM (“Refined PM”) in ingot or other form having a minimum purity
      of .999 at the Refinery.

	 	 	 
	 	2. 	
      Delivery Schedule

	 	 	 
	 		
      Seller may make Periodic shipments on a [weekly,
      bi-weekly, monthly] basis from the mine site to the Refinery. Seller shall
      notify Buyer telephonically or by telecopy of all PM shipped pursuant to
      this Agreement. On the agreed upon outturn date (the “Outturn Date”) the
      material shall be credited to Buyer’s London pool account with JP Morgan
      Chase (“Buyer’s Metal Account”) unless otherwise agreed by the
    parties.

	 	 	 
	 	3. 	
      Purchase Price For Material Sold on an In-Process
      Basis

	 	 	 
	 		
      The purchase price for material sold on an In-Process
      Basis shall equal the agreed upon amount per troy ounce of Refined PM as
      set forth in the applicable trade confirmation sent by Buyer to Seller (the “Purchase
      Price”), multiplied by the agreed upon estimated quantity of PM as set
      forth in the applicable trade confirmation sent by Buyer to Seller (the
      “Estimated Quantity”). The Purchase Price shall be based on the pricing
      established pursuant to Section 2.1 above and adjusted to reflect the
      agreed upon cost of financing and any market contango or backwardation for
      the period from the date of payment to the Outturn Date.

3 

	 	4. 	
      Late Delivery

	 	 	 
	 		
      Subject to Buyer’s other rights hereunder, including the
      right of termination, if the Estimated Quantity is not credited to Buyer’s
      Metal Account on the Outturn Date, the Purchase Price shall be adjusted to
      reflect the additional financing cost of such delay. Such adjustment shall
      be calculated based on an amount equal to the then applicable market based
      PM lending rates (as reasonably determined by Buyer) for the period of
      time from the original Outturn Date to the date the Estimated

	 	 	 
	 		
      Quantity is finally credited to Buyer’s Metal Account
      released to Buyer.

	 	 	 
	 	5. 	
      Shortfall/Surplus

	 	 	 
	 		
      Notwithstanding any of the foregoing, if, for any reason,
      there is a shortfall at the Outturn Date, then Seller shall immediately,
      through pool transfer, market transaction, or other manner acceptable to
      Buyer, transfer to Buyer the subject PM shortfall.

	 	 	 
	 		
      In the event that there is a surplus at Outturn, then
      Seller may elect to immediately sell the surplus amount at Buyer’s then
      current spot market price, or maintain the surplus balance of ounces in
      its account with Buyer until sold on a date specified by Seller in the
      future.

	 	 	 
	 	6. 	
      Shortfall/Surplus Account

	 	 	 
	 		
      For practical purposes, Seller and Buyer may mutually
      agree to keep an ongoing over/under account which is to be settled
      whenever the over/under quantity exceeds 20 ounces of refined
  gold.

	 	 	 
	 		
      Buyer will provide Seller with a shipment by shipment
      settlement report which shall include the details of all pricings,
      outturns, payments, and adjustments. This shall be a perpetual electronic
      file which will be used by Seller and Buyer to monitor movements in the
      over/under account.

	 	 	 
	 	7. 	
      Payment

	 	 	 
	 		
      The Purchase Price shall be paid by wire transfer to
      Seller’s designated account in US Dollars against Buyer’s receipt of the following
      documents:

4 

	 		(a) 	
      Seller’s letter of instruction to the Refinery in
      substantially the form attached hereto as Exhibit A; and

	 	 	 	 
	 		(b) 	
      An executed Refiner’s Holding Certificate in
      substantially the form attached hereto as Exhibit B.

	 	 	 	 
	 	8. 	
      Title/Ownership of PM Shipment

	 	 	 	 
	 		
      Ownership of the PM shall become vested in Buyer as of
      the date that the Purchase Price multiplied by the Estimated Quantity is
      paid to Seller in accordance with the terms of this Agreement. All records
      and documents prepared by or which come into the possession of Seller with
      respect thereto shall be retained and maintained, in trust, for Buyer by
      Seller in a custodial capacity and delivered to Buyer upon
  request.

	 	 	 	 
	 	9. 	
      Inspection

	 	 	 	 
	 		
      Buyer shall have the right to have an agent or
      representative inspect and/or take samples of the Unrefined PM at any time
      and to witness the loading/sealing of the containers in which the Refined
      PM is to be shipped from the Refinery.

4.0 Representations and Warranties, Covenants 

Seller represents and warrants to Buyer that: 

(a) the PM conforms to or will conform
to the description of such goods contained in this Agreement; the material
containing the PM contains no hazardous materials. 

(b) Seller will convey good title to
such PM free from any security interest, lien or encumbrance; 

(c) Seller has all requisite power,
authority, licenses and approvals necessary to enter into and perform its
obligations under this Agreement; 

(d) Seller or any person designated by
Seller (including any signatory hereto) has due authorization to act in all
respects relating to this Agreement;

(e) this Agreement and the transaction
relating thereto are valid and legally binding obligations of the Seller
enforceable against it in accordance with their terms;

(f) Seller is not insolvent, has not
declared bankruptcy and has no intention or plans for doing so;

5 

(g) Seller covenants and agrees to
provide Buyer with immediate telephonic notice, promptly followed by electronic
mail and telecopy, of the occurrence of any of the following events: 

(1)any material discrepancy in the
assays of Seller and Refiner; 

(2) any loss or delay or other material
event with respect to any PM purchased hereunder; and

Buyer represents and warrants to Seller that: 

(b) The Buyer has sufficient financial
and other resources to meet its obligations under this Agreement and the gold
pre-payment dated February 14, 2012; 

(c) Buyer has all requisite power,
authority, licenses and approvals necessary to enter into and perform its
obligations under this Agreement; 

(d) Buyer or any person designated by
Buyer (including any signatory hereto) has due authorization to act in all
respects relating to this Agreement;

(e) this Agreement and the transaction
relating thereto are valid and legally binding obligations of the Buyer
enforceable against it in accordance with their terms;

(f) Buyer is not insolvent, has not
declared bankruptcy and has no intention or plans for doing so;

5.0 Term 

This Agreement shall be for a period of one year from the date
hereof or as long as there are any obligations of Seller with Buyer under the
gold prepayment dated February 14, 2012 or the call option agreement dated
February 14, 2012; the Agreement shall be automatically extended for successive
one year periods unless terminated by either party 60 days prior to the then
expiration date hereof, provided that this Agreement may not be terminated by
the Seller while any of such obligations under the financing or call options are
outstanding.

6 

6.0 Authorized Officers 

The individuals identified herein shall be
authorized to enter the transactions contemplated herein on behalf of Seller.

	Name 	Title 
	Brian Kirwin 	Chief Executive Officer 
	Joe Chan 	Chief Financial Officer

7.0 Governing Law; Submission to Jurisdiction; Waiver of
Jury Trial 

This Agreement shall be governed by and interpreted under the
laws of the State of New York.

Each party waives the posting of any bond otherwise required in
connection with any judicial process or proceeding to enforce any judgment or
other court order entered in favor of such party, or to enforce this Agreement
or any other agreement or document between Seller and Buyer. In addition, each
party waives any right that they may have to a jury trial. 

8.0 Notices 

	 	8.1 If to Buyer: 
	 	 	  	  
	 	 	  	Auramet Trading, LLC 
	 	 	 	2 Executive
  Drive  
	 	 	  	Suite 645 
	 	 		 Fort Lee, NJ
    07024  
	 	 		 Tel:
    201-905-5002  
	 	 		 Fax:
    201-905-5001  
	 	 	  	  
	 	8.2 If to Seller: 
	 	 	  	  
	 	 	  	American Bonanza Gold Corp. 
	 	 	  	200 Granville Street – Suite 1238 
	 	 	  	Vancouver, BC 
	 	 	 	Canada V6C 1S4  
	 	 	 	 Tel:
  604-688-7523 
	 	 		 Fax:
    604-681-0122  

7 

 

Exhibit A 
[Letterhead] 

[INSTRUCTIONS TO THE REFINER] 

[ ] [ ], 2011 

Customer Service Manager 

VIA FAX: 

Dear Sirs: 

	RE: 	(“Seller”) Sale to Auramet
      Trading, LLC(“Buyer”), Shipment Number
      [ ]. 

This letter is to confirm that Seller has sold [dore,
concentrate, carbon material] containing [ ] troy ounces of gold (the “PM”) to
Buyer pursuant to a Purchase Contract and Bill of Sale dated [] [], 2011. The PM
is currently in transit in unrefined form to [ ] (the “Refinery”) pursuant to
bill of lading number [ ]. Seller agrees to be responsible for and pay all
refining costs. 

This transfer and conveyance cannot be withdrawn or amended
without the prior written consent and explicit agreement of Buyer. All further
instructions concerning this PM shall come exclusively from Buyer. 

Upon the receipt of this fax, please complete the following
form indicating your understanding and acceptance of these instructions and fax
the completed form separately to Auramet, Precious Metals Operations,
201-905-5001. 

Thank you in advance for your assistance.

Regards, 

[_________]

______________________
[ Title ]

9 

Exhibit B 
[Refiner/Processor’s Holding Certificate] 

From: 

	To: 	Auramet Trading, LLC 
	  	Suite 645, 2 Executive Drive 
	  	Fort Lee, NJ 07024 
	  	Tel : 201-905-5000 
	  	Fax: 201-905-5001 
	  	 
	  	 
	Re: 	PM Shipment, Bill of Lading #[ ] from [ ]
      (“Seller”). 

We hereby confirm receipt of Seller’s notice dated [ ] [ ],
2011 and acknowledge that the above-captioned PM shipment has been sold to
Auramet Trading, LLC (“Buyer”) and that title to such goods has been transferred
to Buyer. 

We hereby irrevocably undertake that upon receipt of such goods
we shall hold them to the order of Buyer without set-off, deduction or
counterclaim. We agree that Seller shall be the sole party responsible for the
payment of any and all refining costs associated with this PM shipment. Such
goods and any documents relating thereto shall not be released to anyone other
than Buyer without the prior written agreement of Buyer. 

We undertake to keep the same free from any mortgage, charge,
pledge, lien or other encumbrance and all other third party rights. 

We undertake to promptly inform you in the event and to the
extent that the weights or assays produced by us materially differ from those
received from your Seller with respect to the captioned Shipment. 

Such goods are insured under our existing all risk (including
casualty and theft) policy. We hereby undertake to keep the goods insured while
they are in our possession.

	 	Sincerely, 
	 	 
	 	 
	 	By:
_________________________

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