Canarc Resource Corp. Options Lightning Tree Gold Property in Idaho to Minkap Resources Inc.
Exhibit 99.1
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000-000 Xxxx
Xxxxxx
Xxxxxxxxx, XX X0X
0X0
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T:
604.685.9700
F: 604.6685-9744
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xxx.xxxxxx.xxx
CCM:
TSX
CRCUF:
OTCQB
|
Canarc
Resource Corp. Options Lightning Tree Gold Property in Idaho to
Minkap Resources Inc.
________________________________________________________________________________________
Vancouver, Canada - July 6, 2020 – Canarc
Resource Corp. (TSX: CCM, OTC-BB: CRCUF, Frankfurt: CAN)
(“Canarc” or the “Company”) announces that the Company has
signed a non-binding letter of intent (the “LOI”) dated
July 6, 2020 with Minkap Resources Inc. (“MinKap”)
whereby MinKap (TSX-V: KAP) can acquire a 100% undivided interest
in the Lightning Tree property (the “Property”) located
in Lemhi County, Idaho, USA under a definitive option agreement
(the “Agreement”) from Canarc.
Lightning Tree is
one of 11 mineral properties in the American Innovative Minerals
(“AIM”) USA gold package acquired by Canarc in 2017. It
is also the fourth AIM property optioned out to third parties
wanting to explore and earn interests in Canarc’s
Nevada/Idaho portfolio. Canarc continues to receive expressions of
interest in the remaining 7 AIM USA properties as well as the
Corral Canyon project in Nevada.
Canarc is focused
on creating shareholder value by advancing its attractive Canadian
gold projects and acquiring new gold properties with exciting
discovery potential. The Company is fully funded to drill its
district scale Windfall Hills and Hard Cash gold exploration
projects over the next three months.
Xxxxx Xxxxxxxx,
Canarc’s CEO, stated: “I look forward to working with Minkap
as they conduct exploration on Lightning Tree and the surrounding
properties they have optioned from another party. The consolidation
of this low sulfidation epithermal gold system represents an
exciting exploration opportunity. Lightning Tree hosts historic
high grade mine workings but has not to Canarc’s knowledge
ever seen systematic exploration or been drilled in modern
times.”
“This transaction allows Canarc to realize value on Lightning
Tree while we focus on two upcoming drilling campaigns on our large
gold properties in Nunavut and British Columbia over the next
couple of months. It also makes room in our portfolio for
additional strategic gold property
acquisitions.”
Terms
of the Agreement under the LOI:
Under the terms of
the LOI, MinKap may enter into the Agreement with the Canarc to
acquire a 100% undivided interest in the Lightning Tree Property by
completing, among other things, the following:
●
Issuing
Canarc an aggregate 2,500,000 common shares and 2,500,000 common
share purchase warrants over 2 years;
●
Paying
Canarc C$137,500 in total, including C$12,500 upon receipt of final
approval from the TSX Venture Exchange of the Agreement (the
“Approval Date”);
●
C$25,000 due on the
first anniversary from the Approval Date;
●
C$50,000 due on the
second anniversary from the Approval Date;
●
C$50,000 due on the
third anniversary from the Approval Date;
●
Spending an
aggregate $2,000,000 in exploration over 3 years, commencing on the
date MinKap receives an exploration drill permit for the Property
(the “Permit Date”)
●
Issuing
to Canarc a 2.5% net smelter return royalty (“Canarc
NSR”) in respect of the Property, subject to MinKap retaining
an option to acquire 1% of the Canarc NSR for a cash payment of
C$1,000,000;
●
Publicly file a
mineral resource estimate in compliance with National Instrument
43-101 (“NI 43-101”) on the Property within 3 years of
the Permit Date; and
●
Pay a
one-time bonus payment of C$1.00 per ounce of gold or gold
equivalent, up to a maximum of $1,000,000, upon the filing on SEDAR
of a NI 43-101 compliant resource of 1,000,000 ounces of gold or
gold equivalent on a pro-rate basis between Canarc and an
additional vendor.
About
the Lightning Tree Property, Idaho
The property
consists of 4 unpatented claims in section 34 of 08/T20N/R18E, 38
km SW of Salmon in Lemhi County, Idaho. The lands are administered
by the US Forest Service.
The claims lie
along the regional, northeast-trending Trans-Challis structural
zone and mineral belt adjoining the south side of the Xxxxxxxx gold
deposit (~300k oz Au @ 1.22 g/t Au, Bravura Ventures),
approximately 25 km southwest of Beartrack deposit (~650k oz Au @
1.02 g/t Au, 1994-2000 production, Meridian Gold) and 70 km
northeast of Grouse Creek deposit (~250k oz Au @ 1.44 g/t, Hecla
Mining).
The property
contains northwest-striking epithermal quartz-adularia veins along
the Xxxxxxx fault zone separating the Apple Creek Formation
siltstones to northeast from the Challis volcanics to the
southwest. Historic gold production during the 1930’s and
1940’s came from one adit and at least three other workings
that are located on the property. Rock-chip samples previously
collected across the old workings in 2010 returned high-grade gold
assay results, including 15 g/t Au over 1.7 m. There is no evidence
of historic drilling on the claims.
"Xxxxx Xxxxxxxx”
____________________
Xxxxx Xxxxxxxx, Chief Executive
Officer
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 OTCQX: CRCUF.
For More Information - Please contact:
Xxxxx Xxxxxxxx,
CEO
Toll Free:
0-000-000-0000
Tel: (000) 000-0000
Cell: (000)
000-0000
Email: xxxxx@xxxxxx.xxx
Website: xxx.xxxxxx.xxx
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.
