Canarc Resource Corp. Options Lightning Tree Gold Property in Idaho to Minkap Resources Inc. ________________________________________________________________________________________
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 Ju ly 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, US A 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.
Scott Eldridge, 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 Nun avut and B ritish 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 L ightning Tree Property by completing, among other
things, the following:
CANARC RESOURCE CORP.
810-625 Howe Street
Vancouver, BC V6C 2T6
T: 604.685.9700
F: 604.6685 -9744
www. canarc.net
CCM: TSX
CRCUF: OTCQX
• 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 o f 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 royal ty (“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 Musgrove 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
Meadows fault zone separating the Apple Creek F ormation 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.
"Scott Eldridge”
____________________
Scott Eldridge, Chief Executive Officer
CANARC RESOURCE CORP.
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 wi th 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:
Scott Eldridge, CEO
Toll Free: 1-877-684-9700 Tel: (604) 685-9700 Cell: (604) 722-5381
Email: [email protected] Website: www.canarc.net
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 materiall y
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.