Canarc deals Mexican option to Noranda

Canarc Resource (CCM-T) has agreed to a $312,000 private placement financing with a major shareholder.

The financing consists of 780,000 shares at 40 cents each and 390,000 warrants, exerciseable at 60 cents per share within a 2-year period. The proceeds will be added to general working capital.

In related news, Canarc has optioned to Noranda (NOR-T) two of its mineral properties in Mexico’s Zacatecas state.

A Mexican subsidiary of Noranda can earn up to 70% interest in each of the Lobo 6 and Lobo 8 properties by making cash payments, stock investments and work commitments over a 6-year period.

Noranda can earn an initial 51% interest in the Lobo 6 concession, which covers 27,760 ha about 50 km northwest of the San Nicolas massive sulphide deposit, by spending $1.1 million on exploration over three years and paying $45,000 cash and $490,000 in share purchases at a minimum of $1-3 per share. A further 19% can be earned by delivering a bankable feasibility study and buying $2 million worth of additional shares at a minimum of $4-6 per share.

Noranda can also earn a 51% interest in the 48,640-ha Lobo 8 property, which lies east of the Fresnillo silver mine, by spending $1.5 million on exploration, paying $65,000 in cash and making $700,000 in share purchases. The terms to earn an additional 19% are identical to those that apply to Lobo 6.

Geophysical surveying on both properties is expected to begin in the new year.