Canarc Resource to Acquire Oro Silver and El Compas Project

Canarc Resource Corp. (TSX:CCM,OTCBB:CRCUF) announced that it’s executed a definitive agreement under which it will acquire Oro Silver Resources Ltd., a wholly owned subsidiary of Marlin Gold Mining Ltd. (TSXV:MLN).
Oro is the owner of the Mexico-based El Compas gold-silver mine project. The deal is expected to close on November 30, 2015.
As quoted in the press release:

According to the agreement, Canarc will acquire a 100% interest in Marlin’s wholly owned subsidiary Oro Silver that owns 100% of El Compas. Based on the agreement, Canarc will issue Marlin a total of 19 million Canarc common shares (representing approximately 10% of the Canarc shares outstanding post closing) in exchange of 100% interest in Oro Silver.
Additionally, on each of the first three anniversaries of the definitive agreement, 55 troy ounces of gold (or the US dollar equivalent) will be paid by Canarc to Marlin, or any of its subsidiaries.
Marlin will also receive a 1.5% NSR on all Non-Altiplano claims that currently have no royalty on them.
Canarc successfully raised a total of $690,000 equity financing by way of private placement on September 22, 2015. This was Canarc’s only condition precedent to signing the agreement. Marlin will invest an additional CAD$100,000 into the Canarc private placement on closing of the transaction, which will increase its Canarc holdings to approximately 11% of the outstanding shares post closing.

Catalin Chiloflischi, CEO of Canarc, commented:

Today’s acquisition marks a major step forward for Canarc to transition into a successful producing gold-silver mining company during 2016. This transaction adds a second advanced asset to Canarc’s portfolio located in one of the world’s most prolific gold-silver districts. This fully permitted mining project in Mexico should not only provide Canarc with near term cash flow to help facilitate future growth, it is also a district scale exploration project with many prospective targets that have never been drilled.

Click here to read the full Canarc Resource Corp. (TSX:CCM,OTCBB:CRCUF) press release.