Canarc Closes Acquisition of Nevada Gold Assets
Vancouver, Canada – March 21, 2017 – Canarc Resource Corp. (“Company or Canarc”) (TSX: CCM, OTC-BB: CRCUF, Frankfurt: CAN) announces that it has executed and closed a definitive agreement (the “Agreement”) with American Innovative Minerals LLC. (“AIM”), whereby Canarc acquired through its wholly owned Nevada based subsidiary called “AIM US Holdings” 100% of AIM’s outstanding securities for a total purchase price of US$2 million that has been paid at closing.
Canarc now owns 10 gold exploration properties, two of which have previously estimated historic gold resources, in Nevada, one gold project in Idaho, two royalty interests on other properties as well as data on 500 Nevada exploration properties and an additional 100 exploration properties in Montana and the western USA.
Future Plans
Canarc has already commissioned an updated NI 43-101 resource report on the main asset in the portfolio, the Fondaway Canyon gold project. The updated resource report is targeted for completion in April 2017.
Fondaway Canyon has historical Indicated resources of 409,000 ounces of gold at an average grade of 6.18 g/t gold within 2,050,000 tonnes and Inferred resources of 660,000 ounces of gold at an average grade of 6.4 g/t gold within 3,200,000 tonnes, using a cut-off grade of 3.43 g/t gold. These resources are historical estimates and a qualified person for Canarc has not done sufficient work to reclassify them as a current mineral resource. As a result the historical estimate is not being treated as a current mineral resource. Details of the historical gold resource can be found in the December 20, 2016 news release issued by Aorere Resources a New Zealand Exchange listed company.
Canarc is also planning to retain an experienced Nevada focused geologist in order to complete an in depth review of all projects and prioritize exploration targets for drilling. Management’s review of Fondaway Canyon recognized significant potential to verify the historic resources and expand them along strike and at depth.
Current Cash
Following the closing of the AIM acquisition Canarc’s cash position remains robust holding approximately C$8 million cash and equivalents.
