BRIEF-Kerr Mines enters into letter agreement with American Bonanza Gold Corp

Jan 23 (Reuters) - Kerr Mines Inc KER.TO :

* Enters into letter agreement with American Bonanza Gold Corp

* Each American Bonanza shareholder entitled to receive about 0.53 of common

share of co for every 1 common share of American Bonanza

* Immediately after deal,board of Kerr Mines to be reconstituted to consist of

five nominees of Kerr Mines two nominees of American Bonanza

* American Bonanza may issue up to additional 337 million American Bonanza

shares prior to closing of deal to settle certain outstanding debt

* Source text for Eikon News Search ID:nCCN6pLSs0

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