Canarc forms strategic alliance with Echo Bay Mines.VANCOUVER, B.C.--(BUSINESS WIRE)--March 27, 1995--Canarc Resource Corp. (CCM CCM Contemporary Christian Music CCM Critical Care Medicine CCM County College of Morris (New Jersey) CCM Chama Cha Mapinduzi (political party, Tanzania) CCM CORBA Component Model .T) announces that the Company has entered into a strategic alliance with Echo Bay Mines Ltd. The purpose of the alliance is to explore for, and if successful, develop to production large scale gold deposits on one Canarc mineral property in either Guyana or Suriname, selected for the strategic alliance by Echo Bay on or before April 13, 1995. Echo Bay has agreed to provide Canarc with approximately $8,380,000 Cdn, consisting of a private placement of 3,000,000 Canarc common shares at $2.36 per share for total proceeds of $7,080,000 Cdn, as well as a cash payment of approximately $1,300,000 Cdn. to reflect partial reimbursement of Canarc's aggregate country costs to March 31, 1995. After this financing, Echo Bay will hold 10.5% of the common shares of the Company. Canarc will spend a minimum of approximately $5,000,000 Cdn. exploring the selected property as Operator to the pre-feasibility stage, at which point Echo Bay will then have the right to become the operator and develop the property further and complete a bankable bank·a·ble adj. 1. Acceptable to or at a bank: bankable funds. 2. Guaranteed to bring profit: a bankable movie star. feasibility study The analysis of a problem to determine if it can be solved effectively. The operational (will it work?), economical (costs and benefits) and technical (can it be built?) aspects are part of the study. Results of the study determine whether the solution should be implemented. at a minimum cost at least equal to Canarc's total cost for the selected property. Upon delivery of the bankable feasibility study to Canarc, Echo Bay can earn a 50% interest in Canarc's property interest by paying Canarc a "success fee" equal to 5% of the world spot gold price times 50% of Canarc's share of the proven and probable mineable ounces prior to Echo Bay's vesting its interest, as identified in the feasibility study. Canarc President, Bradford Cooke, stated that, "Under our strategic alliance with Echo Bay Mines, Canarc has joined forces with a top North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. gold producer who has the ability and desire to turn our potential gold discoveries into profitably operating gold mines. We welcome Echo Bay both as a partner and as a shareholder". Canarc is currently drilling a number of bulk tonnage gold targets located on two of its properties in Guyana and Suriname. A third property is scheduled for drilling commencing in the second quarter of 1995. The agreement is subject to Board approval by both companies and Regulatory approvals. A finder's fee Finder's fee A fee a person or company charges for service as an intermediary in a transaction. finder's fee The charge levied by a person or firm for putting together a deal. may be payable by Canarc on this transaction. Canarc Resource Corp is a growth-oriented, international gold exploration and mining company with active gold projects in North, Central and South America South America, fourth largest continent (1991 est. pop. 299,150,000), c.6,880,000 sq mi (17,819,000 sq km), the southern of the two continents of the Western Hemisphere. . ON BEHALF OF THE BOARD OF DIRECTORS Bradford J. Cooke President CONTACT: Todd McMurray, Vice President Investor Relations Investor relations The process by which the corporation communicates with its investors. 604/685-9700 604/685-9744 (FAX) INDUSTRY KEYWORD: MINING REPEATS: New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of 212-575-8822 or 800-221-2462; Boston 617-330-5311 or 80 |
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