A recently completed private placement in Tombstone Explorations (VSE) gives Canarc Resource (VSE) an indirect interest in 35 mineral concessions making up 15 properties in Bolivar State, Venezuela.
Canarc recently completed the purchase of one million shares of Tombstone at $1.90 each and holds warrants to purchase an additional million at $1.90 each, on or before June 30, 1993.
Canarc also has the right to earn a 50% interest in 17 of Tombstone’s concessions (nine properties) in Bolivar State by spending up to US$9 million over a four-year period.
According to the agreement with Tombstone, Canarc must make minimum expenditures of US$390,000 within six months, US$900,000 within one year, US$2.7 million within two years, US$5.4 million within three years, and US$9 million within four years.
Tombstone recently closed an agreement to acquire the 35 Venezuelan mineral concessions. The company now owns the alluvial gold and diamond rights to all the properties and either owns or has applied for the hardrock rights. According to Tombstone’s deal with the underlying holder, it will pay an aggregate of US$7 million in cash as well as issue nine million shares over a 23-month period to complete the acquisition.
As stipulated in the agreement, Tombstone recently completed the March 1 payment of US$1.4 million plus 1.5 million shares.
Canarc plans to begin a $1-million program shortly on the Tombstone ground, including airborne geophysical surveys, ground geophysics and geological mapping, in order to identify prospective gold targets for trenching and drilling.
Canarc recently opened an office in Venezuela and is negotiating to acquire additional properties in the country.
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