Sale Of Oro Silver And El Compas Mine Project 

 

VANCOUVER - Canarc Resource Corp. has closed the sale transaction under the definitive agreement with Endeavour Silver Corp. pursuant to which Canarc sold to Endeavour 100% of the shares of Canarc’s wholly-owned subsidiary, Oro Silver Resources Ltd., which indirectly holds a 100% interest in the El Compas Gold-Silver Mine Project in Zacatecas, Mexico, in consideration for 2,147,239 free-trading common shares of Endeavour, with an aggregate deemed value of CAD$10.5 million.

The Endeavour shares were issued to Canarc. As additional consideration, Endeavour has assumed Canarc’s obligation to deliver an aggregate of 165 troy ounces of gold (or the US Dollar equivalent thereof) to Marlin Gold Mining Ltd. in three equal payments of 55 troy ounces which are due in October 2016, 2017 and 2018. 

Canarc’s enhanced financial position should allow the Company to pursue more substantial M&A opportunities aimed at creating additional growth and value for shareholders. The Company has already begun reviewing several new projects generated by management or submitted by investment bankers. 

Going forward, management remains focused on acquiring near term gold-silver-copper mining assets located in Mexico, US and Canada, together with a renewed effort to advance the Company’s New Polaris and Windfall Hills projects.