Business
Canarc Resource Options Its Fondaway Canyon and Dixie Comstock Properties in Nevada to Getchell Gold
VANCOUVER, BC / ACCESSWIRE / October 17, 2019 / Canarc Resource Corp. (TSX:CCM)(OTCQB:CRCUF...
About this update from Canagold Resources Ltd
[{"type":"text","content":"Canarc Resource Options Its Fondaway Canyon and Dixie Comstock Properties in Nevada to Getchell GoldVANCOUVER, BC / ACCESSWIRE / October 17, 2019 / Canarc Resource Corp. (TSX:CCM)(OTCQB:CRCUF)(Frankfurt:CAN) (\"Canarc\") announces that it has executed a binding Letter Agreement (the \"BLA\") with Getchell Gold Corp. (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 AgreementUnder 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 shares1st Anniversary - US $100,000 in cash and US $200,000 in shares2nd Anniversary - US $100,000 in cash and US $300,000 in shares3rd Anniversary - US $100,000 in cash and US $400,000 in sharesPay annual claim maintenance fees and advanced Royalty payments totaling approximately US$100,000Grant 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 propertyWork commitments:Year 1 - US $300,000Year 2 - US $400,000Year 3 - US $500,000Year 4 - US $250,000The annual cash and stock payments to Can...