 |
CANARC
RESOURCE CORP.
810-625
Howe Street
Vancouver,
BC V6C 2T6
|
T: 604.685.9700
F: 604.6685-9744
|
www.canarc.net
CCM:
TSX
CRCUF:
OTCQB
|
Canarc
Resource Options its Fondaway Canyon and Dixie Comstock Properties
in Nevada to Getchell Gold
___________________________________________________________________________________________
Vancouver, Canada –
October 17, 2019 – Canarc Resource Corp. (TSX: CCM, OTC-QB: CRCUF,
Frankfurt: CAN) (“Canarc”) announces that it has
executed a binding Letter Agreement (the “BLA”) with
Getchell Gold Corp. (CSE:
GTCH) (“Getchell”) whereby
Getchell will have an option for 4 years to acquire 100% of the
Fondaway Canyon and Dixie Comstock properties located in Churchill
County, Nevada (both subject to a 2% NSR) for US$4 million in total
compensation to Canarc. The option also includes minimum annual
work commitments on the properties. Canarc and Getchell have agreed
to a binding 105-day exclusivity period during which due diligence
will be conducted and the definitive option agreement will be
completed.
Scott
Eldridge, Canarc's CEO, stated: "I
look forward to working with Getchell while they conduct further
exploration on Fondaway Canyon and Dixie Comstock, allowing Canarc
to focus on our other projects. Given Canarc’s strategic
shift towards exploring for new discoveries we are excited to see
Getchell’s commitment to spend US $1.45 million over 4 years
on these two properties.”
Mr.
Bill Wagener, CEO of Getchell, stated: “The
acquisition of two gold properties with historical estimates
substantially enhances Getchell’s potential to accelerate the
creation of shareholder value through extensions and new
discoveries in the mining friendly jurisdiction of
Nevada.”
Letter
Agreement
Under
the terms of the BLA, Getchell can acquire 100% of the two projects
at any time on or before the 4th anniversary of the agreement by
paying Canarc US $2.0M in cash and US $2.0M in Getchell
shares.
Payment
Terms:
●
Upon signing the
definitive agreement - US $100,000 in cash and US $100,000 in
shares
●
1st Anniversary
– US $100,000 in cash and US $200,000 in shares
●
2nd Anniversary
– US $100,000 in cash and US $300,000 in shares
●
3rd Anniversary
– US $100,000 in cash and US $400,000 in shares
●
Pay annual claim
maintenance fees and advanced Royalty payments totaling
approximately US$100,000
●
Grant Canarc a 2%
NSR on the Fondaway Canyon and Dixie Comstock properties of which
half (1%) can be bought for US $1,000,000 per property
Work
commitments:
●
Year 1 – US
$300,000
●
Year 2 – US
$400,000
●
Year 3 – US
$500,000
●
Year 4 – US
$250,000
The
annual cash and stock payments to Canarc are part of the total US$4
million compensation to acquire the two properties. Getchell must
also honor the pre-existing NSR and advance royalty commitments
related to the properties.
Signing
of the definitive option agreement is subject to satisfactory due
diligence and completion of sufficient financing by
Getchell.
The
Properties
Fondaway Canyon is an advanced stage gold property located
in the Churchill County, Nevada. The land package contains 136
unpatented lode claims. The property has a history of exploration
that includes drilling by Canarc in 2017 as well as gold and
tungsten mining from the 1950's through 1990.
Fondaway Canyon was
the subject of a 43-101 Technical Report dated April 03, 2017 by
Techbase International Ltd. confirming indicated resources of
409,000 ounces of gold at an average grade of 6.18 g/t gold and
Inferred resources of 660,000 ounces of gold at an average grade of
6.4 g/t gold, using a cut-off grade of 3.43 g/t gold.
The
Fondaway Canyon mineralization is contained in multiple
quartz-sulphide shear zones extending for 3.5 km along strike and
covering a vertical range of 670 m. Shear-zone and disseminatd gold
mineralization is hosted by Mesozoic sedimentary rocks and is
coincident with a swarm of mafic to felsic dikes A number of
exploration targets exist, including extensions of known
mineralized zones, deeper testing of exposed mineralization that
has been tested only very shallowly by past drilling, and
poorly-explored mineralization known to occur beneath shallow
alluvial cover.
Dixie Comstock, also located in
Churchill County, Nevada, consists of 28 unpatented lode claims.
The project is the site of intermittent mining from 1938 through
1970 that produced an estimated 4,600 ounces of gold from 10,000
tons. There has been no exploration at the project since
2008.
A
historic geologic and mining study completed by Mine Development
Associates of Reno, Nevada, in March 1991 estimated a geologic
resource of 146,000 ounces of gold at a grade of 1.063 g/t and a
cutoff grade of 0.343 g/t.
The
Dixie Comstock deposit is classified as a low-sulfidation
epithermal system localized along an east-dipping range-front
normal fault. The mineralization is hosted by Jurassic gabbro and
mafic tuff in the footwall of the fault, by silicification within
the fault zone, and within tuffaceous sediments in the hanging wall
of the fault.
Canarc
considers these results to be historical, it has not completed
sufficient work to independently verify them.
Canarc
looks forward to Getchell’s exploration and advancement of
these two properties.
Qualified
Person
Dr. Jacob Margolis is a qualified person, as defined by National
Instrument 43-101, and has approved the technical information in
this news release. Dr. Margolis is engaged as a consultant to
Canarc Resource Corp as Vice President of Exploration.
"Scott Eldridge”
____________________
Scott Eldridge, Chief Executive
Officer
CANARC
RESOURCE CORP.
About Canarc - Canarc Resource Corp. is
a growth-oriented gold exploration company focused on generating
superior shareholder returns by discovering, exploring and
developing strategic gold deposits in North America. The
Company is currently advancing two core assets, each with
substantial gold resources, and has initiated a high impact
exploration strategy to acquire and explore new properties that
have district-scale gold discovery potential. Canarc shares
trade on the TSX: CCM and the OTCQB: CRCUF.
For More Information - Please contact:
Scott
Eldridge, CEO
Toll
Free: 1-877-684-9700
Tel: (604)
685-9700
Cell: (604)
722-5381
Email:
scott@canarc.net
Website:
www.canarc.net
Cautionary Note Regarding Forward-Looking Statements
This news release contains “forward-looking statements”
within the meaning of the United States private securities
litigation reform act of 1995 and “forward-looking
information” within the meaning of applicable Canadian
securities legislation. Statements contained in this news release
that are not historic facts are forward-looking information that
involves known and unknown risks and uncertainties. Forward-looking
statements in this news release include, but are not limited to,
statements with respect to the future performance of Canarc, and
the Company's plans and exploration programs for its mineral
properties, including the timing of such plans and programs. In
certain cases, forward-looking statements can be identified by the
use of words such as "plans", "has proven", "expects" or "does not
expect", "is expected", "potential", "appears", "budget",
"scheduled", "estimates", "forecasts", "at least", "intends",
"anticipates" or "does not anticipate", or "believes", or
variations of such words and phrases or state that certain actions,
events or results "may", "could", "would", "should", "might" or
"will be taken", "occur" or "be achieved".
Forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of the Company to be materially
different from any future results, performance or achievements
expressed or implied by the forward-looking statements. Such risks
and other factors include, among others, the Company’s
ongoing due diligence review in relation to the Acquisition, risks
related to the uncertainties inherent in the estimation of mineral
resources; commodity prices; changes in general economic
conditions; market sentiment; currency exchange rates; the
Company's ability to continue as a going concern; the Company's
ability to raise funds through equity financings; risks inherent in
mineral exploration; risks related to operations in foreign
countries; future prices of metals; failure of equipment or
processes to operate as anticipated; accidents, labor disputes and
other risks of the mining industry; delays in obtaining
governmental approvals; government regulation of mining operations;
environmental risks; title disputes or claims; limitations on
insurance coverage and the timing and possible outcome of
litigation. Although the Company has attempted to identify
important factors that could affect the Company and may cause
actual actions, events or results to differ materially from those
described in forward-looking statements, there may be other factors
that cause actions, events or results not to be as anticipated,
estimated or intended. There can be no assurance that
forward-looking statements will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such statements. Accordingly, do not place undue
reliance on forward-looking statements. All statements are made as
of the date of this news release and the Company is under no
obligation to update or alter any forward-looking statements except
as required under applicable securities laws.